abce certificate
Tuesday, 02 December, 2008, 21:50 GMT | more >>

CNOOC trumps Chevron bid



By Upstream staff 

China's CNOOC has offered $18.5 billion for Unocal, outbidding Chevron by $1.5 billion.

If Unocal accepts the offer, it will be the largest foreign acquisition made by a Chinese company.

CNOOC chairman and chief Fu Chengyu said the bid is intended to be a friendly, consensual transaction.

China's skyrocketing energy consumption has incited Chinese companies to explore offshore oil and gas reserves.

CNOOC said the purchase of Unocal would double its production and increase its reserves by 80%.

Technically, Unocal reached an acquisition agreement with Chevron in April, but the company said it still will consider CNOOC's offer, valued at $67 per share.

Following a week of wrangling and skepticism on the part of several US congressmen and the business community, Chengyu assured that the purchase posed no threat and would simply be a commercial agreement.

Chevron offered Unocal a cash and stock deal for $16.4 billion, or $65 per share. Unocal's board and the Federal Trade Commission have already have approved that offer.

Chevron said its bid stands and that it "combines compelling value, regulatory certainty and accelerated timing, providing a superior transaction for Unocal stockholders," according to company reports.

CNOOC said that, if accepted, they hope to complete the deal within six months.


Thursday, 23 June, 2005, 15:50 GMT  | last updated: Thursday, 23 June, 2005, 15:53 GMT

e-mail this article to a colleague


to email:  from:
comments: