China's CNOOC to buy Canada's Nexen for $15.1 billion |
| Reuters Canada - Jul 23, 2012 |
State-controlled CNOOC Ltd launched one of China's richest takeover bids yet on Monday by agreeing to buy Canadian oil producer Nexen Inc for $15.1 billion, forcing Ottawa to decide whether national security concerns outweigh its desire for foreign investment in its energy resources.
CNOOC, China's third-largest oil company, hopes to sell the deal to shareholders and the government by offering a hefty 61 percent premium to Nexen's Friday stock price, pledging to retain all employees and promising to make Canada home base for its Western Hemisphere operations.
CNOOC is offering $27.50 cash a share for Nexen, which has oil sands operations in the Canadian province of Alberta, shale gas in the province of British Columbia and extensive exploration and production holdings in the North Sea, Gulf of Mexico and offshore West Africa.
The move is the most ambitious foray by resource-hungry China into North American energy since a 2005 attempt to buy U.S.-based Unocal for $18.5 billion was thwarted by a political backlash there.
Read Full Article from Reuters Canada
- Posted: 2012-07-23 12:11:08
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