CNOOC accepts Canada's demands for approval of $15.1 bn Nexen deal: report
20 November 2012
China National Offshore Oil Corp (CNOOC) has accepted the Canadian government terms on management and employment conditions on its proposed $15.1 billion acquisition of upstream oil and gas company Nexen Inc, Bloomberg today reported, citing two people with knowledge of the matter.
The report said that the Canadian government has ceded to the demands made by Alberta Premier Alison Redford on guarantees that at least 50 per cent of Nexen's board and management post be held by Canadians.
The Canadian government, which has already extended its review on the deal for a second time early this month to 10 December, (See: Canada extends review of $15.1 bn Cnooc-Nexen deal by a month) is reviewing the proposed transaction under the country's foreign-takeover law, which states that any acquisition need to have a ''net benefit'' to the country.
Canadian lawmakers have expressed national security concerns on the acquisition of an oil and gas producer by a foreign government-owned company.
Canadian Prime Minister Stephen Harper had at a recent news conference in Senegal said the CNOOC-Nexen deal raised national security concerns.
Although he did not elaborate, Canadian Security Intelligence Service (CSIS) had earlier this year raised questions in its annual report on foreign investment by overseas state-owned companies.