AP News

Canada to take more time on CNOOC takeover


TORONTO (AP) — Canada is taking more time to review Chinese state-owned CNOOC's takeover bid for Canadian oil and gas producer Nexen. It would be China's biggest overseas energy acquisition.

Industry Minister Christian Paradis said in a statement Friday evening that the review of the proposed purchase, with its $15.1 billion price tag, has been extended by 30 days until Dec. 10.

Extensions under the Act are not unusual, Paradis said. It's the second time the review has been extended.

Canada is in the process of studying whether the deal represents a "net benefit" to the country. The review will shed light on Canada's policy toward foreign takeovers, particularly when the foreign company is owned by the state.

State-owned Chinese companies have moved carefully since CNOOC tried seven years ago to buy Unocal but was rejected by U.S. lawmakers citing national security fears.


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