The Canadian government is nearing a ruling on the proposed $15.1 billion acquisition of Nexen Inc. (NYSE: NXY) by China’s Cnooc Ltd. (NYSE: CEO), and the government is apparently seeking reciprocity as part of its approval for the deal.
A report at Bloomberg News cites unnamed sources as saying that Canada wants China to approve several Canadian transactions in China in exchange for approval of the Cnooc-Nexen deal. A list of the deals Canada wants to go forward will be included in the foreign investment policy that the government is expected to release very soon.
Yesterday the Canadian government rejected the takeover of natural gas producer Progress Energy by the state-owned Malaysian energy firm Petronas. The rejection sent shares of Canadian oil and gas producers plummeting, including Nexen, which closed down about 4.5% yesterday.
Because about 10% of Nexen’s assets are located in the United States, the U.S. government will also need to give approval to the deal.
After an initial drop, Nexen’s shares are up 0.2% in early trading, at $24.20 in a 52-week range of $13.63 to $26.21. Cnooc is offering $27.50 a share for Nexen.
Paul Ausick
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.