CNOOC Accepts Additional Nexen Takeover Clauses
Chinese energy giant CNOOC Ltd. (CEO) accepted the clauses laid down by the Canadian government for its acquisition of the Calgary, Alberta-based energy producer Nexen Inc. (NXY) for approximately $15.1 billion in cash, as per a report from Bloomberg.
To make the road for approval more stringent, Alberta Premier Alison Redford had made a request to the Canadian government last month to insist that at least half of the members of Nexen’s board and management be held by Canadians.
Other recommendations for CNOOC include maintenance of workforce levels for at least five years. This will ensure the maintenance of planned capital spending and an elucidation of research and development goals post merger. The contract is still subject to approvals from Canada’s industry ministry.
-Zacks Equity Research