Nexen acquired by Chinese company
Jul 23, 2012 at 5:07 am in Business, News by tyler.king
Nexen has been bought by a Chinese company.
Offshore oil company CNOOC Ltd. will buy the company for 15.1 billion dollars cash.
It already owned a 35 percent stake in Nexen’s Long Lake oil sands project.
CNOOC CEO Li Fanrong says workers at Nexen aren’t at risk.
“We are committed to retaining all Nexen employees,” Li said. “And it is our hope that they will stay and grow with us.”
“For our employees, we believe this opens the door to new and exciting opportunities for them, as part of a larger, financially stronger, global organization,” added Nexen CEO Kevin Reinhart.
“[We intend] to be a good employer,” Li added, “and intend to continue Nexen’s commitment to the environment and communities, just as we do in our own operations throughout the world.”
The company is paying a 66 percent premium on Nexen’s shares to take over the company.
CNOOC says it intends to set up its North American headquarters in Calgary, and have a listing on the Toronto Stock Exchange.
The federal government will have to approve the sale.
The federal NDP is calling for a public hearing into whether it’ll be good for the country.
Published July 23, 2012
Updated July 24, 2012