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Xinhua: Canada Extended Review Schedule for CNOOC Acquisition of Nexen

Xinhua recently reported that Paradis, the Canadian Minister of Industry, announced on October 10, 2012, that the federal schedule for review of China National Offshore Oil Corporation’s (CNOOC’s) acquisition of the Canadian energy company Nexen will be extended for 30 more days. Under the Investment Canada Act, the transaction is subject to the approval of the Federal Government of Canada. The Act was designed to regulate transactions over CAN$330 million to ensure that Canada will enjoy a “net profit.” If the US$15.1 billion acquisition is successful, it will become China’s largest acquisition of an overseas company. Paradis’ announcement suggested that the case is under “complete, careful, and strict” review. Nexen is a global independent energy company listed on the Toronto and New York stock exchanges. The company focuses on the development of Western Canada’s oil sands and shale gas, as well as conventional oil and gas exploration in the North Sea, offshore West Africa, and the deep-water Gulf of Mexico.
Source: Xinhua, October 12, 2012