Chinese Oil Acquired Canada's NEXEN

     

The China National Offshore Oil Corp (CNOOC) has completed its $15.1 billion purchase of Canada's Nexen energy group on Monday, in what analysts have said is China's largest foreign investment.

Calgary, Alberta-based Nexen said in a statement on Monday that the deal has closed and that its shareholders will receive $27.50 in cash for each Nexen share. In a separate statement, the head of state-run CNOOC Wang Yilin said "we strongly believe that this acquisition is a good strategic fit for us and will create long-term value for our shareholders."

     Nexen said its common and preferred shares will be delisted from the Toronto Stock Exchange in a few days, while its common shares are expected to cease being traded on the New York Stock Exchange prior to the market opening on February 26.

     Calgary-based Nexen produces the equivalent of around 213,000 barrels of oil a day, with concessions in Canada's oil sands, Britain's North Sea, Nigeria, the Gulf of Mexico, and Colombia.

Up until the purchase, Nexen was the 10th largest Canadian petroleum company by sales, with particularly promising assets in the oil sands of the western province of Alberta.

    The deal was originally announced in July 23 and won approval from Canadian regulators in December. Earlier this month, CNOOC overcame its last major hurdle after the deal was cleared by the Committee on Foreign Investment in the United States, which had a say because of Nexen's exploration and production assets in the Gulf of Mexico.

Source: bnn.ca

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