Canada weighs options on CNOOC deal

Canada PM: Stephen Harper faces delicate balancing act on Cnooc deal

Reuters/Scanpix

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News Wires

 08 August 2012 16:47 GMT

Prime Minister Stephen Harper and his cabinet are wrestling with how to handle the proposed takeover of Calgary-based Nexen by China’s CNOOC, as some investors anticipate Canada will block the bid.

CNOOC’s $15.1 billion agreement to buy Nexen will be part of the discussions when Harper meets his ministers in Ottawa today, Bloomberg reported, citing a person with knowledge of the matter unauthorised to speak publicly.

The state-owned company’s bid, which the US is also studying, tests Harper’s ability to balance the need to bolster economic relations with China while ensuring the Asian country does not gain too much influence over the oil sands, the world’s third-largest pool of oil reserves.

Options for Harper include capping investments by Chinese enterprises or placing strict conditions…

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