Canada ex­tends re­view of Cnooc bid for Nexen

The Pak Banker - - Front Page -


Canada has ex­tended its re­view of Bei­jing-based Cnooc Ltd. $15.1 bil­lion takeover of Nexen Inc. for a sec­ond time, re­set­ting the dead­line to Dec. 10.

Prime Min­is­ter Stephen Harper's gov­ern­ment be­gan its re­view of the bid for the Cal­gary oil and gas pro­ducer un­der the coun­try's for­eign­takeover law af­ter it was an­nounced on July 23. On Oct. 11, In­dus­try Min­is­ter Chris­tian Par­adis said he ex­tended the re­view by 30 days.

"Ex­ten­sions to the re­view pe­riod are not un­usual," Par­adis said in a state­ment that was emailed late yes­ter­day. "The pro­posed trans­ac­tion is un­der­go­ing a rig­or­ous re­view un­der the In­vest­ment Canada Act."

"A de­ter­mi­na­tion will be made based on the six clear fac­tors that are laid out in de­tail in sec­tion 20 of the Act band the Guide­lines on In­vest­ment by State-Owned En­ter­prises," Par­adis said in the state­ment.

"The re­quired time will be taken to con­duct a thor­ough and care­ful re­view of this pro­posed in­vest­ment." Un­der the law, Bei­jing-based Cnooc had to agree to the dead­line ex­ten­sion.

Harper, who be­gins his third trip to Asia this year when he ar­rives in In­dia to­mor­row, has said he wants to rely less on a slug­gish U.S. econ­omy for ex­ports and ship more en­ergy to fast- grow­ing Asian economies. Canada re­lies on ex­ports for about one- third of its gross do­mes­tic prod­uct, with about three-quar­ters of its for­eign ship­ments sent to the U.S.

Nat­u­ral Re­sources Min­is­ter Joe Oliver has said the coun­try's big­gest re­source projects will re­quire nearly C$650 bil­lion ($653 bil­lion) of in­vest­ment to de­velop over the next decade.

Harper has said he would clar­ify Canada's for­eign in­vest­ment rules in a "pol­icy frame­work" to be re­leased when the gov­ern­ment de­cides on the Cnooc's bid -- the largest for­eign ac­qui­si­tion by a Chi­nese com­pany.

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