Chinese oil giant CNOOC buys Canada's Nexen

The Chinese oil giant CNOOC completed its $15.1 billion purchase of Canada's Nexen energy group on Monday, in what analysts have said is China's largest foreign investment.

Canada gave the green light in December, as did the United States, which had to approve the deal because of Nexen's activities in the Gulf of Mexico.

Nexen confirmed the completion of the acquisition in a statement, noting that its shareholders had received $27.50 per share, a gain of $10 compared to the day before the announcement of the transaction in July.

In a separate statement, the head of state-run CNOOC Wang Yilin said "we strongly believe that this acquisition is a good strategic fit for us and will create long-term value for our shareholders."

The CNOOC deal is China's largest foreign investment and its largest energy deal, according to data firm Dealogic.

Calgary-based Nexen produces the equivalent of around 213,000 barrels of oil a day, with concessions in Canada's oil sands, Britain's North Sea, Nigeria, the Gulf of Mexico and Colombia.

Up until the purchase, Nexen was the 10th largest Canadian petroleum company by sales, with particularly promising assets in the oil sands of the western province of Alberta.

Nexen said it would be retired from the Toronto Stock Exchange in the coming days, with CEO Kevin Reinhart staying on as head of the CNOOC subsidiary.

The deal sparked debate in Canada, where Prime Minister Stephen Harper approved the transaction while tightening the criteria for the purchase of Canadian companies by foreign firms, particularly in the oil sands sector.

  • 2015 Nissan Murano aims for the style-forward crowd 6 hours ago
    2015 Nissan Murano aims for the style-forward crowd

    Nissan says its 2015 Murano crossover, only the second major revamp of the car since it debuted in 2003, draws its design cues from the “age of future space flight.” That’s probably taking it a little far, but the new Murano, based off the 2013 Resonance concept vehicle, is an exceptionally lovely machine, all fluid, curved metal on the outside, and flowing, soft-touch materials on the inside. Certain kinds of comfort and charms that were unheard-of outside of premium vehicles five years ago have definitely trickled down, and reached a kind of design apotheosis with this car.

  • Volkswagen brings new (ish) Jetta to New York along with Golf Sportwagen 9 hours ago
    Volkswagen brings new (ish) Jetta to New York along with Golf Sportwagen

    With its new President and CEO of America, Michael Horn, on stage in New York after just 100 days on the job, Volkswagen debuted its 2015 Jetta. You'd be forgiven for noticing little differences compared to the outgoing model, and in the words of Horn himself, the changes are indeed subtle. The most notable of those subtleties is the all-new 2.0 liter turbo diesel motor, offering 45 mpg highway and a modest increase of 10 hp. For VW, diesel is where it's at.

  • With Vantage GT, Aston Martin races below $100,000 10 hours ago
    With Vantage GT, Aston Martin races below $100,000

    Aston Martin is going downmarket, sort of. The 2015 Vantage GT, a sport-styled variant of Aston’s legendary flagship car, draws style and performance tips from their GT4 race cars, which will be running in North America this year. It’s also priced at $99,900, which shows that the market for these kinds of consumer sports cars has boomed in recent years.