Chinese $15B Nexen oil takeover approved by shareholders
CBC News
Posted: Sep 20, 2012 9:00 AM ET
Last Updated: Sep 20, 2012 10:24 PM ET
Nexen Inc. shareholders have overwhelmingly voted in favour of a takeover of the Calgary-based energy company by China National Offshore Oil Company.
Some 99 per cent of common shareholders voted in favour of CNOOC's $27.50-per-share cash offer, and 87 per cent of preferred shareholders did so.
Because of the premium that CNOOC was offering, shareholder approval was largely a formality. But the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.
Regulators are tasked with ensuring that the deal meets the nebulous "net benefit" test that tripped up BHP-Billiton's hostile takeover bid for Potash Corporation of Saskatchewan.
Government regulations require a ruling on the deal by mid-October, but that could be pushed back into November if necessary.
Calgary West MP Rob Anders said on Monday he opposes the takeover because China is a "non-benevolent country."
Minister of State for Finance Ted Menzies has said he's heard from people on both sides of the issue.
"I've heard many concerns, varying concerns, concerns about the resource industry, concerns about a foreign company investing in Canada," Menzies said earlier this week, according to Reuters. "We're hearing comments on both sides of the story, many supportive and certainly some that are concerned."
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.
Nexen has offshore oil and gas assets around the world, as well as a stake in the Long Lake oilsands project in Alberta and shale gas operations in B.C.
With files from The Canadian PressShare Tools
Top News Headlines
- Obesity now recognized as a disease
- The American Medical Association has voted to recognize obesity as a disease, while doctors in Canada say they also treat it as such. more »
- B.C. First Nation sets fires to save bison
- A First Nation band is reviving the age-old practice of controlled burning in order to improve the health of forests and restore the population of the wood bison in a corner of northeastern B.C. more »
- 1 in 8 bird species threatened with extinction
- One in eight bird species worldwide faces the threat of extinction, according to a report released by Birdlife International. more »
- Canada buys rare War of 1812 collection for $573K
- The government of Canada was the winning bidder for a large collection of letters, maps and other papers that once belonged to Sir John Sherbrooke, the lieutenant-governor of Nova Scotia who conquered Maine for the British during the War of 1812. The collection sold for $573,000 at auction in London. more »
Must Watch
Latest Business Headlines
- Orascom withdraws bid for control of Wind Mobile
- Orascom Telecom Holding has announced it is pulling back its bid to buy out Wind Mobile Canada founder and CEO Anthony Lacavera and acquire full control of the company, in which it already holds a 65 per cent interest. more »
- Poloz urges 'stability and patience' in 1st public speech
- In his first public remarks since being named governor of the Bank of Canada, Stephen Poloz said the central bank will keep its focus trained squarely on keeping inflation in check. more »
- World's wealthy richer than ever
- The investable wealth of the world's richest people reached a record high of $46.2 trillion US in 2012, a report by RBC Wealth Management and the consulting firm Capgemini has found. more »
- Talking Keystone, Redford says Canada and U.S. share energy values
- Alberta Premier Alison Redford says the United States and Canada share political and environmental values and must work together to become energy independent of those who do not. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12268.29 | -99.17 |
| DOW | 15112.19 | -206.04 |
| NASDAQ | 3443.20 | -38.98 |
| SP 500 | 1628.93 | -22.88 |
| TSX-VENTURE | 924.25 | -5.74 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Sopranos star James Gandolfini dies in Italy
- Wearing a mask at a riot is now a crime
- Dozens of children seized from Manitoba Mennonite community
- B.C. teacher duct-taped students' mouths
- B.C. First Nation sets fires to save bison
- Richmond widow racks up $1,800 hospital parking bill
- Obesity now recognized as a disease
- Bob Rae quits as MP in 'very emotional' decision
- Hail, flash floods hit southeast Alberta

