China bids $15B for Calgary oilsands firm


China is looking to buy Canadian oil, and they are willing to pay over $15 billion in cash for it. China National Offshore Oil Company has bid to take over Calgary-based oil and gas firm Nexen for $15.1 billion (U.S.), the CBC reports.

The state-owned Chinese oil company will reportedly pay $27.50 per share, making it the largest transaction ever attempted by the Chinese government. CNOCC plans to keep all employees and make Canada a hub for operations in the west, writes Yahoo.

Nexen said the deal needs approval from regulators, including those in the United States, writes CNN, and the full transaction should be worked out by the end of 2012. The deal also needs Canada’s federal government”s approval, in accordance with the Investment Canada Act, which is no guarantee.

In 2009, Ottawa blocked a $39 billion foreign takeover bid of Potash Corp. of Saskatchewan from an Australian company. The NDP has asked for a full public review of the deal, reports Canadian Business.

Filed under:

China bids $15B for Calgary oilsands firm

  1. Why we would ever place any of our land or resources under the ownership of a foreign *government* is beyond me. A sale to a Chinese company is a sale to the Chinese government. What would people say if the US gov’t wanted to buy a $15 billion stake in the oil sands?

  2. Selling our resource production/ extraction to foreign governments is a terrible idea. The word treason comes to mind….

Sign in to comment.