Nexen buyout-China’s largest foreign acquisition
February 26, 2013, 9:00 am

The headquarters of the state-owned China National Offshore Oil Corp [AP]

Canada’s oil and gas company Nexen Inc. has been acquired by state owned China National Offshore Oil Corporation (CNOOC) in a $15.1 billion deal.

It is the largest overseas acquisition ever made by a Chinese company.

CNOOC, which announced the deal on its website on Tuesday, is China’s largest offshore oil and gas producer.

Wang Yilin, chairman of CNOOC, said the company is delighted to have acquired a leading international platform through the acquisition of Nexen.

“We strongly believe that this acquisition is a good strategic fit for us and will create long-term value for our shareholders,” Wang said.

The statement said Kevin Reinhart will continue to serve as CEO of Nexen, which will operate as a wholly-owned subsidiary of CNOOC.

Li Fanrong, CEO of CNOOC Limited, a listed subsidiary of the company, will chair the new Nexen board, the statement said.

Li said Nexen owns a large resource and reserve base and high-potential exploration prospects.

“We will thoroughly utilise the platform it provides to further our overseas business,” said Li.

The deal was first announced in July 2012.

CNOOC Limited shares opened 0.78 per cent lower at 15.2 HK dollars (about $1.96) in Hong Kong on Tuesday.

Xinhua