Canadian Manufacturing

Paradis extends review of proposed Chinese takeover of Nexen

Initial 45-day review period was set to end Oct. 12; extended by 30 days

October 11, 2012  by The Canadian Press

OTTAWA—The federal government is extending its review period for the proposed takeover of Nexen Inc. by China’s state-owned offshore oil company.

Industry Minister Christian Paradis says the review under the Investment Canada Act is being extended by 30 days.

An initial 45-day review period was set to end Oct. 12.

China National Offshore Oil Corp. (CNOOC) has offered $15.1-billion to buy Calgary-based Nexen.


Under the legislation, the deal, which has already been approved by shareholders, must be of “net benefit” to Canada to be approved.

The deal has raised concerns in Ottawa and Prime Minister Stephen Harper has said it “raises a range of difficult policy questions.”

The review period can be extended again, with the consent of CNOOC.

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