) and Chinese energy giant
) have jointly agreed to extend the deadline for the closing of
the proposed $15.1 billion deal by 30 days. The group took this
decision as it awaits approval from the U.S. government.
CNOOC LTD ADR (CEO): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
NEXEN INC (NXY): Free Stock Analysis Report
CHINA PETRO&CHM (SNP): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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Nexen said that the Outside Date was originally Jan 31, 2013.
Now, it has been postponed to Mar 2. Although the companies
gained approvals from the authorities of Canada, the United
Kingdom, the European Union and the People's Republic of China,
the Committee on Foreign Investment in the U.S. is yet to give
its green signal.
Notably, owing to this extension, Nexen will also defer its
fourth quarter 2012 earnings and annual financial report. The
Calgary, Alberta-based oil-sands operator did not specify any
date for the release.
The parties involved in the transaction can extend the Outside
Date until they obtain all the regulatory approvals. However,
such extensions are not expected to exceed 75 business days from
Jan 31, in aggregate.
Last December, CNOOC got the nod from the Canadian authorities.
This marked the clearing of a major impediment in completing the
China's biggest ever $15.1 billion foreign take over.
CNOOC − China's biggest offshore oil and gas producer −
highlighted during the Jul 23 bid that upon the successful
completion of the deal, CNOOC will list its shares on the Toronto
Stock Exchange. It will also retain Nexen's existing employees,
and establish Calgary as its North and Central American
As the world's second-largest economy, China has a huge energy
requirement. The Nexen acquisition bid foregrounds not just the
bold attempt of CNOOC but also of other Chinese biggies to make
deeper inroads into the international energy markets with the
specific aim of meeting domestic demand.
China Petroleum & Chemical Corp.
), aka Sinopec, planned to acquire international upstream oil and
gas assets from its parent company, China Petrochemical Corp., or
Sinopec Group, in order to spread its footprint globally. In this
regard, Sinopec is eyeing assets in countries such as the U.K.,
Russia, Colombia and Kazakhstan.
The transaction - expected in April this year - would position
Sinopec on the same platform with other international energy
CNOOC currently retains a Zacks Rank #3 (short-term Hold rating).