Nexen shareholders vote to approve $15.1-billion takeover offer from CNOOC

Written By empapat on Kamis, 20 September 2012 | 07.44

An oil rig of CNOOC (China National Offshore Oil Corporation) sits in Bohai Bay, China, in October 2007. THE CANADIAN PRESS/AP, Imaginechina

An oil rig of CNOOC (China National Offshore Oil Corporation) sits in Bohai Bay, China, in October 2007. THE CANADIAN PRESS/AP, Imaginechina

CALGARY - Shareholders of Nexen Inc. (TSX:NXY) have voted to approve a proposed Chinese takeover of the company by China National Offshore Oil Company.

However, the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.

The deal faces the key "net benefit" test that tripped up BHP-Billiton's hostile takeover bid for Potash Corporation of Saskatchewan.

Concerns have been raised by Alberta Tory MP Ted Menzies who has said he's been getting a lot of negative feedback from constituents about the takeover by a state-owned Chinese firm.

Prime Minister Stephen Harper has also said that China needs to show its state-run enterprises can be trusted to play by the same rules as Canada.

CNOOC has offered $27.50 per share in cash for Nexen, which has offshore oil and gas assets around the world as well as a stake in the Long Lake oil sands project in Alberta and shale gas operations in B.C.

© The Canadian Press, 2012

20 Sep, 2012


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Source: http://www.globalnews.ca/Canada/nexen+shareholders+vote+to+approve+151-billion+takeover+offer+from+cnooc/6442718916/story.html
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