(EnergyAsia, February 27 2013, Wednesday) — Seven months after launching its troubled takeover bid, Chinese state-owned CNOOC Limited said it has completed the US$15.1 billion acquisition of Canada’s upstream company Nexen Inc.
Operating as a wholly owned subsidiary of CNOOC Limited, Nexen will continue to be led by CEO, Kevin Reinhart, who has been with the company for over 18 years.
CNOOC Limited said its CEO, Li Fanrong, will also chair the new board comprising representatives of the Chinese firm, existing Nexen management and Canadian independent directors.
Mr Li said: “Nexen is a strong, diverse company with attractive growth prospects, a large resource and reserve base, high potential exploration prospects, and high quality talented employees capable of extracting the value of these assets. We will thoroughly utilize the platform it provides to further our overseas business. ”
Wang Yilin, CNOOC Limited chairman, said:
“The company is delighted to acquire 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.”
When it announced its takeover bid last July, CNOOC paid C$27.50 a share for a hefty premium of more than 60% over Nexen’s last traded price on the Toronto Stock Exchange. The Chinese firm faced stiff political and public opposition from Canada which feared Nexen would be run by Beijing’s political establishment.
Ironically, the day that CNOOC completed the acquisition, Nexen which will be operated as a profit-driven entity, reported a C$6 million loss for the fourth quarter, reversing a gain of $43 million the same time the previous financial year.