An oil rig of CNOOC (China National Offshore Oil Company) sits in Bohai Bay, China, in October 2007. THE CANADIAN PRESS/AP, Imaginechina
September 26, 2012 - 12:10 PM
TORONTO - DBRS says the net benefit of the takeover of Nexen Inc. (TSX:NXY) by a Chinese company is "somewhat mixed in terms of economic and political aspects."
The debt rating agency says the deal is not necessary as Nexen is already a strong company with good access to capital markets.
However, DBRS says the takeover would "dramatically" improve Canada-China relations.
Ottawa is reviewing the $15.1-billion takeover by the Chinese National Offshore Oil Company under the Investment Canada Act.
The deal faces the key "net benefit" test under the act that tripped up BHP-Billiton's hostile takeover bid for Potash Corporation of Saskatchewan (TSX:POT).
Nexen shareholders voted to approve the takeover last week.
News from © The Canadian Press, 2012