CNOOC's Nexen bid may succeed
By Richard Fu |
October 23, 2012, Tuesday
|
Print Edition
Print Edition
CNOOC Ltd's US$15.1 billion bid for Canada's Nexen Inc may still succeed though the risks of politics blocking the deal rose after Ottawa rejected Malaysian oil major Petronas' takeover of another Canadian firm, analysts said.
But CNOOC's offer to buy oil sands producer Nexen may be successful because only 32 percent of the Canadian firm's current production is in the country, Neil Beveridge, analyst at Sanford C. Bernstein, said in a note. Another factor that may favor the deal is that CNOOC has agreed to retain Nexen's employees and list shares in Toronto, he added.
Petronas and Progress Energy Resources Corp yesterday said they plan to meet with Canadian officials and work together to overturn Canada's surprise move on Friday to block Petronas' US$5.2 billion bid for Progress, which has all its assets in Canada. Petronas has 30 days to tweak its offer.
Petronas' case "has increased the probability that the CNOOC/Nexen deal will not be approved and sends a clear signal that Canada is not as open to oil and gas mergers and acquisitions as it has appeared," Beveridge said. But he added the differences between Progress and Nexen "make us still believe the transaction will close."
A final decision by the Canadian government on the CNOOC/Nexen deal is set to be made on November 9.
But CNOOC's offer to buy oil sands producer Nexen may be successful because only 32 percent of the Canadian firm's current production is in the country, Neil Beveridge, analyst at Sanford C. Bernstein, said in a note. Another factor that may favor the deal is that CNOOC has agreed to retain Nexen's employees and list shares in Toronto, he added.
Petronas and Progress Energy Resources Corp yesterday said they plan to meet with Canadian officials and work together to overturn Canada's surprise move on Friday to block Petronas' US$5.2 billion bid for Progress, which has all its assets in Canada. Petronas has 30 days to tweak its offer.
Petronas' case "has increased the probability that the CNOOC/Nexen deal will not be approved and sends a clear signal that Canada is not as open to oil and gas mergers and acquisitions as it has appeared," Beveridge said. But he added the differences between Progress and Nexen "make us still believe the transaction will close."
A final decision by the Canadian government on the CNOOC/Nexen deal is set to be made on November 9.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
