Canadian Manufacturing

Nexen shareholders vote to approve CNOOC bid

CNOOC has offered $27.50 per share in cash for Nexen

CALGARY—Shareholders of Nexen Inc. have voted to approve a proposed Chinese takeover of the company by China National Offshore Oil Company (CNOOC).

However, the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.

The deal faces the key “net benefit” test that tripped up BHP-Billiton’s hostile takeover bid for Potash Corp. of Saskatchewan.

Concerns have been raised by Alberta Tory MP Ted Menzies who has said he’s been getting a lot of negative feedback from constituents about the takeover by a state-owned Chinese firm.

Prime Minister Stephen Harper has also said that China needs to show its state-run enterprises can be trusted to play by the same rules as Canada.

CNOOC has offered $27.50 per share in cash for Nexen, about a $10.00-per-share premium on the pre-bid price.

Nexen has offshore oil and gas assets around the world as well as a stake in the Long Lake oil sands project in Alberta and shale gas operations in B.C.

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