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Nexen shareholders approve $15.1-billion takeover by China’s CNOOC

Signage at the headquarters of CNOOC (China National Offshore Oil Corporation) is shown in Beijing.

Mu sen/THE CANADIAN PRESS

Shareholders of Nexen Inc. have voted to approve a proposed Chinese takeover of the company by China's CNOOC Ltd.

Of the votes cast, the deal received 99 per cent approval from Nexen's common shareholders while some 87 per cent of preferred shareholders supported the bid.

However, the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.

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The deal faces the key "net benefit" test that tripped up BHP-Billiton's hostile takeover bid for Potash Corp. of Saskatchewan.

Concerns have been raised by Alberta Tory MP Ted Menzies who has said he's been getting a lot of negative feedback from constituents about the takeover by a state-owned Chinese firm.

Prime Minister Stephen Harper has also said that China needs to show its state-run enterprises can be trusted to play by the same rules as Canada.

CNOOC has offered $27.50 per share in cash for Nexen, which has offshore oil and gas assets around the world as well as a stake in the Long Lake oil sands project in Alberta and shale gas operations in B.C.

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