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Monday, 23 July 2012

Canadian Oil and gas producer Nexen has agreed to be acquired by Chinese Oil Company for US $15.1 Billion CASH -

Canadian Oil and gas producer Nexen has agreed to be acquired by Chinese Oil Company for US $15.1 Billion CASH - 




Oil and gas producer Nexen Inc. (TSX: NXY) has agreed to be acquired by China National Offshore Oil Company for US$15.1 billion cash.


The Calgary-based firm will be purchased by CNOOC Ltd. in an all-cash transaction worth $27.50 per Nexen share.


The agreement is a 66 per cent premium over the 20-day weighed volume average of Nexen shares, and a 61 per cent premium on the closing price of its shares on Friday at the New York Stock Exchange.


In pre-market trading, shares (NYSE: NXY) of the company were up $9.50 to US$26.56 on the NYSE.


“This transaction will allow for significant investment in our business and opens the door to new opportunities for our employees,” said Nexen chief executive Kevin Reinhart in a release.


As part of the transaction, CNOOC said it plans to list its shares on the Toronto Stock Exchange. It also intends to have a head office in Calgary to oversee its North and Central American operations.


CNOOC also noted that it intends to keep Nexen’s existing management and staff.


Read more - 
http://www.thestar.com/business/article/1230343--nexen-to-be-acquired-by-china-s-cnooc-for-15-1-billion-in-cash

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