Canada's Harper Mulls Nexen Takeover by China's CNOOC

Created: 2012-09-07 10:13 EST

Category: Business
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Canadian Prime Minister Stephen Harper is evaluating a bid that would have the country’s Nexen, Inc. oil company bought by Chinese state-owned company CNOOC. The $15.1 billion takeover would be a big milestone for Beijing, looking to tap Canada’s vast supply of oil found in sand.

 

Prime Minister Harper says this takeover is different to most because it involves a state-owned enterprise, and his government would need to see if the deal would be enough of a benefit for Canada. There’s also a policy framework that’s being drawn up to evaluate the move.

 

Mr. Harper has acknowledged that Canadians may not be enthusiastic about the possible deal, but said it’s an opportunity for China to prove it can “play by the same rules” as Canadians.