CALGARY, A.B. – Husky Energy Inc. is walking away from its hostile takeover offer for MEG Energy Corp. after failing to win enough shareholder support.
Husky says there have also been several negative surprises in the market since it first announced its offer at the end of September last year.
The company cited production cuts for the oil industry mandated by the Alberta government and a lack of progress on Canadian oil export pipeline developments.
The company’s offer for MEG expired Wednesday.
All of the MEG shares that had been tendered to the offer will be returned to shareholders.
Husky launched its stock-and-cash offer in September, but MEG rejected the bid as too low.