Monday, March 24, 2014

Canada opens a pipeline to China

From:  Market Watch

By MarketWatch 

An earlier version of this story omitted initial reference to Malaysia. The story has been corrected.
ReutersCnooc wins Canadian government approval to buy Nexen.

SAN FRANCISCO (MarketWatch) — Canada’s government has ruled: Selling two key energy companies to Asia is good for the nation. 

Facing a Monday deadline, the government announced late Friday that the $15 billion bid the China National Offshore Oil Corp., or Cnooc Ltd. CEO +1.53% , made in July for Calgary-based Nexen Inc. provides a “net benefit” for Canada. 

It also approved a $5.2 billion takeover of Progress Energy Resources Corp. by Petronas, Malaysia’s national oil company. See: Canada OKs Cnooc-Nexen, Petronas-Progress bids.
How the government reached its decision is a bit of a mystery. Just a month ago it looked like national security concerns would scuttle the Petronas-Progress deal, which in turn cast a very dark cloud over the Cnooc-Nexen takeover. 

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