CNOOC, Nexen Extend Deadline - Analyst Blog
28 Gennaio 2013 - 4:10PM
Zacks
Energy producer Nexen
Inc. (NXY) and Chinese energy giant CNOOC
Ltd. (CEO) have jointly agreed to extend the deadline for
the closing of the proposed $15.1 billion deal by 30 days. The
group took this decision as it awaits approval from the U.S.
government.
Nexen said that the Outside Date was originally Jan 31, 2013. Now,
it has been postponed to Mar 2. Although the companies gained
approvals from the authorities of Canada, the United Kingdom, the
European Union and the People’s Republic of China, the Committee on
Foreign Investment in the U.S. is yet to give its green signal.
Notably, owing to this extension, Nexen will also defer its fourth
quarter 2012 earnings and annual financial report. The Calgary,
Alberta-based oil-sands operator did not specify any date for the
release.
The parties involved in the transaction can extend the Outside Date
until they obtain all the regulatory approvals. However, such
extensions are not expected to exceed 75 business days from Jan 31,
in aggregate.
Last December, CNOOC got the nod from the Canadian authorities.
This marked the clearing of a major impediment in completing the
China's biggest ever $15.1 billion foreign take over.
CNOOC − China’s biggest offshore oil and gas producer − highlighted
during the Jul 23 bid that upon the successful completion of the
deal, CNOOC will list its shares on the Toronto Stock Exchange. It
will also retain Nexen’s existing employees, and establish Calgary
as its North and Central American headquarters.
As the world's second-largest economy, China has a huge energy
requirement. The Nexen acquisition bid foregrounds not just the
bold attempt of CNOOC but also of other Chinese biggies to make
deeper inroads into the international energy markets with the
specific aim of meeting domestic demand.
Recently, China Petroleum & Chemical Corp.
(SNP), aka Sinopec, planned to acquire international upstream oil
and gas assets from its parent company, China Petrochemical Corp.,
or Sinopec Group, in order to spread its footprint globally. In
this regard, Sinopec is eyeing assets in countries such as the
U.K., Russia, Colombia and Kazakhstan.
The transaction – expected in April this year – would position
Sinopec on the same platform with other international energy giants
like ExxonMobil Corp. (XOM) and Chevron
Corp. (CVX).
CNOOC currently retains a Zacks Rank #3 (short-term Hold
rating).
CNOOC LTD ADR (CEO): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
NEXEN INC (NXY): Free Stock Analysis Report
CHINA PETRO&CHM (SNP): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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