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CNOOC accepts new Canadian terms to win Nexen deal nod

CNOOC executive director, president and chief executive Li Fanrong attends a news conference on its 2012 strategy preview in Hong Kong. — Reuters picCNOOC executive director, president and chief executive Li Fanrong attends a news conference on its 2012 strategy preview in Hong Kong. — Reuters picHONG KONG, Nov 20 — China’s state-owned CNOOC Ltd has accepted management and employment conditions set by the Canadian government to win approval for its US$15.1 billion (RM46 billion) takeover of Nexen Inc, Bloomberg reported today, citing two people with knowledge of the matter.

The Canadian government has taken on board requests made by Alberta Premier Alison Redford last month, which include guarantees that at least 50 per cent of Nexen’s board and management positions be held by Canadians, the report said.

Earlier this month, CNOOC chairman Wang Yilin said he was confident of winning regulatory approval from Canada this year for its bid for Nexen, despite Ottawa extending its review of the deal twice.

Canada has been conducting a review to determine whether a takeover by the Chinese state-owned enterprise would bring a “net benefit” to Canada.

Ottawa said on November 2 that it had extended the review by a month to December 10.

A CNOOC spokeswoman in Beijing declined to comment on the report but reiterated the company’s pledge to retain all of Nexen’s management team and employees.

CNOOC’s Hong Kong listed shares were up 2 per cent this morning. Nexen shares ended down 0.4 per cent yesterday. — Reuters

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