At that price, China’s state-owned oil and gas giant would be paying a 61% premium over Nexen’s Friday close. As Jason said, though, it would also mean that CNOOC would be scooping up “900 million barrels of oil equivalent – at a price of just $19.94 a barrel.”
So the deal could be equally beneficial for CNOOC and Nexen shareholders alike.
However, there is a possibility that the deal won’t go through exactly as it currently stands, according to Reuters’ Jon Gordon…
“All signs point to this deal getting the green light from Canada, with new jobs, a Toronto listing for CNOOC, and other goodies in the works. But that doesn’t mean it should just get rubber-stamped. For [Canada’s Prime Minister], this is probably his best chance to exert some real influence in Beijing and try to ask for the favor to be returned, [to get] more market access for Canadian companies that want to buy into China.”