Canada today said it would extend its review of the $15.1 billion bid by Cnooc Ltd. (NYSE: CEO) for Canada’s Nexen Inc. (NYSE: NXY). The delay was already baked into the timeline for approval of the deal, which Cnooc formally requested at the end of August.
Under Canadian law, the government has 45 days to consider whether or not the acquisition offered a “net benefit” to Canada, and could apply for one 30-day extension. The combined 75-day period ends in mid-November. Further delays are possible with the approval of Cnooc.
Canadian Prime Minister Stephen Harper has supported the acquisition of some of the country’s natural resources by China, but has been wary of the proposed takeover of Nexen, which holds about 10% of its assets in the U.S. The U.S. and China must both approve the deal, and there is bipartisan opposition in the U.S. The government of China, which owns a controlling stake in Cnooc’s parent company, is virtually certain to approve the deal.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.