
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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