By Deborah Levine, MarketWatch
SAN FRANCISCO (MarketWatch) — The Canadian government has again delayed a decision on whether a Chinese state-owned company can take over Canadian energy producer Nexen Inc., saying it needs more time to review whether the acquisition would have a “net benefit” to Canada.
The industry ministry extended a review period for China Natonal Offshore Oil Corp. Ltd./, or Cnooc, /quotes/zigman/29647 HK:883 -2.08% $15.1 billion offer until Dec. 10, it said in a statement.
“Extensions to the review period are not unusual, Christian Paradis, minister of industry, said in the statement. He also noted that a decision can be made at any time within that period.
While Canada has been wanting to expand its resource exports to Asia, and reduce reliance on the U.S. economy, the government last month rejected a bid from Malaysia’s Petroliam Nasional Bhd. for natural-gas producer Progress Energy Resources Corp. Read: Canada rejects Petronas energy bid.
At the same time that it decides on CNOOC’s bid, Canada wants to articulate broader guidelines on foreign takeovers of Canadian companies, Reuters reported on Saturday.
Much like CNOOC’s failed attempt to buy U.S. energy giant Unocal in 2007, the Nexen bid has raised Canadian officials’ concerns about letting China control domestic resource assets. Read: CNOOC’s bid deal for Nexen seen succeeding.”