Nexen sale to China's CNOOC backed by Canada government

China is making its biggest-ever energy acquisition through the purchase of Canadian oil company Nexen, Leisha Chi reports.

Related Stories

The Canadian government has approved the sale of oil company Nexen to state-owned Chinese firm CNOOC, but said it would likely block any such future takeovers.

Nexen shareholders approved the $15.1bn (£9.4bn) deal back in September, but it needed final backing from Ottawa.

The sale has proved controversial in Canada, amid concerns that it will give China too much influence over Canada's oil industry.

It is China's largest foreign takeover.

Canadian Prime Minister Stephen Harper said: "Foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada.

"Therefore, going forward, the minister [of industry] will find the acquisition of control of a Canadian oil sands business by a foreign state-owned enterprise to be of net benefit only in an exceptional circumstance."

In a separate announcement, the Canadian government also cleared the takeover of gas producer Progress Energy Resources by Malaysian firm Petronas for $5.5bn.

Canada has a large oil and gas industry, centred on the province of Alberta.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

Programmes

  • An ECG (electrocardiogram)Click Watch

    The wearable technology which could allow you to pay for goods with your heartbeat

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.