Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2012-11-08/cnooc-chairman-confident-nexen-deal-can-be-completed-by-year-end

Bloomberg News

Cnooc Chairman Confident Nexen Deal Done by Year End

November 09, 2012

Cnooc Ltd. (883), China’s biggest offshore oil and natural gas producer, said it’s confident its proposed $15.1 billion takeover of Canada’s Nexen Inc. (NXY:US) will be completed by the end of the year.

“We are fully confident of a successful transaction,” Chairman Wang Yilin said at a meeting held as part of the 18th Chinese Communist Party Congress in Beijing today. “We expect the deal will be done by the end of 2012.”

Canada extended its review of state-owned Cnooc’s bid for the second time on Nov. 2, resetting the deadline to Dec. 10 and citing the need for a thorough review.

“We think this is normal,” Wang said today. “It’s such a big acquisition.”

Cnooc shares fell 0.6 percent to HK$15.98 as of 11:59 a.m. in Hong Kong trading, while the benchmark Hang Seng Index declined 0.4 percent. Nexen shares rose 2.7 percent to US$24.14 in New York at 1:04 p.m., 12 percent below Cnooc’s US$27.50 per- share offer price.

A takeover of Nexen would add around 200,000 barrels a day, or more than 70 million barrels a year to Cnooc’s output. The Beijing-based company last month raised its 2012 net production target as much as 1.5 percent to 245 million barrels.

To contact Bloomberg News staff for this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net; Chua Baizhen in Beijing at bchua14@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus