Canadian Manufacturing

CNOOC yet to make formal Nexen proposal

No deadline for decision to approve or reject the Chinese state-owned company's multibillion-dollar bid



CALGARY—Canada’s industry minister is still waiting for a formal proposal from China National Offshore Oil Co. (CNOOC) to purchase Calgary-based oil and gas company Nexen Inc.

Christian Paradis says there is no deadline for his decision to approve or reject the Chinese state-owned company’s multibillion-dollar bid, but he must actually receive one before a review can begin.

He said the bottom line is that the takeover has to provide a net benefit for Canada.

The Chinese company’s proposed all-cash takeover of oil and gas producer Nexen is a friendly bid.

It offers shareholders a 60 per cent premium on their holdings in a US$15.1-billion deal.

Paradis said it is important not to “prejudge” the review’s outcome.

Stephen Harper’s Conservative government has rejected two foreign takeovers during its time in office. The most notable was a bid by Anglo-Australian mining firm BHP Billiton for Saskatchewan’s Potash Corp. (in 2010.

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