CNOOC closes $15.1 billion acquisition of Canada's Nexen

Mon Feb 25, 2013 6:36pm EST
 

By Euan Rocha

TORONTO (Reuters) - The contentious $15.1 billion takeover of Canadian oil and gas company Nexen Inc NXY.TO by Chinese state-owned entity CNOOC Ltd (0883.HK: Quote) closed on Monday, more than seven months after China's largest-ever foreign takeover was announced.

Nexen, based in Calgary, Alberta, said in a statement on Monday that the deal had closed and its shareholders would receive $27.50 in cash for each Nexen share.

Nexen said its common and preferred shares would be delisted from the Toronto Stock Exchange in a few days, while its common shares were expected to cease trading on the New York Stock Exchange prior to the market opening on February 26.

The company said Kevin Reinhart would remain chief executive of Nexen, which will operate as a wholly owned subsidiary of CNOOC.

Nexen also said it would have a new board chaired by Li Fanrong, who is CEO of CNOOC. Other members of the new Nexen board will be Reinhart, Fang Zhi, Barry Jackson, Thomas O'Neill and William Berry.

The takeover, originally announced in July, won approval from Canadian regulators in December. Earlier this month, CNOOC overcame its last major hurdle after the deal was cleared by the Committee on Foreign Investment in the United States, which had a say because of Nexen's exploration and production assets in the Gulf of Mexico.

The two companies have not disclosed what conditions were imposed by Canadian and U.S. regulators for the deal to win approval, but one of CNOOC's advisers said the parameters around the assurances were largely in line with expectations.

"The level of detail that was negotiated and the time-frames of those commitments, that was a bit of a surprise though," said Dan Barclay, who heads BMO Capital Markets' Canadian M&A group, which acted as one of CNOOC's financial advisors on the deal.   Continued...

 
A logo of China National Offshore Oil Corp (CNOOC) is seen at the top of its headquarters in Beijing November 14, 2012. REUTERS/Petar Kujundzic