(Reuters) -Cenovus Energy ( CVE ) on Wednesday sweetened its offer to acquire MEG Energy ( MEGEF ), raising the value of its proposed deal to C$8.6 billion ($6.16 billion), including debt, in an attempt to match a rival bid from Strathcona Resources ( STHRF ).

Cenovus raised its bid by C$2.35 to about C$29.80 per share, and said this was its "best and final" offer. In comparison, Strathcona's revised offer last month valued MEG at C$30.86 per share.

The battle for MEG, Canada's last large pure-play oil sands company, highlights a years-long trend of domestic consolidation in the country's oil sands. The play is now mostly controlled by a handful of large Canadian companies after foreign players largely exited over the last decade.

MEG's Christina Lake oil sands project has become a prized asset, with its long reserve life, low operating costs and significant potential for production growth, making it one of the few large-scale expansion opportunities.

Cenovus and MEG have also amended a standstill agreement to allow Cenovus to buy up to 9.9% of MEG's shares ahead of the merger vote.

The shareholder meeting has been postponed to Oct. 22 from Oct. 9 to allow investors more time to review the amended proposal.

Last month, MEG Energy ( MEGEF ) urged shareholders to reject the takeover bid from its majority stakeholder, Strathcona, saying the offer "remains fundamentally unattractive," and reaffirmed its support for the sale to Cenovus.

($1 = 1.3953 Canadian dollars)

(Reporting by Tanay Dhumal in Bengaluru; Editing by Shreya Biswas and Shinjini Ganguli)