Sunday, December 9, 2012

Canadian Government Approves Chinese Oil Company Bid For Nexen

China?s Cnooc is a step closer to a big play in the North American energy patch with a green light, declared by the Canadian government Friday evening, on its $15 billion bid for Canadian oil-and-gas explorer Nexen.

Nexen (NXY) shares surged more than 14% after hours, having closed down 6.6% Friday. Shareholders have?approved?the acquisition, but Nexen still needs U.S. and British government approval to complete the deal since it has properties in both places, according to Dow Jones Newswires? Paul Vieira, who added:

?Friday?s decision was Cnooc?s biggest-and most closely watched-hurdle. Canada has long welcomed big foreign investment to help it develop its energy and mining resources.?

The deal is ?likely to be of net benefit to Canada,? according to Canada?s Industry Minister Christian Paradis, as quoted by MarketWatch here.

Canada?s currency should be a beneficiary, given the financing demands of such a large acquisition; ?this deal is the fifth-largest foreign acquisition of a Canadian company ?ever according to Dealogic, and this?Dow Jones Newswires report.

Cnooc?(CEO) is one of the largest independent oil and gas exploration and production companies in the world. ?There?s?more on the company?on its English-language website.?Nexen is a big player in Canada?s oil sands, but it also has shale and conventional exploration?assets.

Asian governments and companies are eager to secure future energy reserves as their populations boom.?The Canadian government also announced that it approved the purchase of Progress Energy Resources by Malaysia?s state-owned oil-and-gas company. ?The Petronas (Petroliam Nasional Bhd)?offer over the summer represented a?77% premium to Progress? then-price; the $5.2 billion deal will mean natural gas exports to Asia. More on that from Bloomberg here.

Source: http://blogs.barrons.com/stockstowatchtoday/2012/12/07/canadian-government-approves-chinese-oil-company-bid-for-nexen/?mod=BOLBlog

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