IN THE NEWS ~ Nexen sale reviewed
July 29th, 2012 - 8:00am
|Published | Publié: 2012-07-29
Received | Reçu: 2012-07-29 3:58 AM
|THE EDMONTON SUN (FINAL)
NEWS, Page: 39
Nexen sale reviewed
Industry Canada's review of CNOOC's multibillion-dollar bid to buy Nexen should be complete within three months, officials said.
"The minister has an initial 45 days to make a determination of the likely net benefit to Canada of a proposed investment," said Industry Canada spokeswoman Lauren Hebert.
"The minister may extend this period by an additional 30 days where required.
The review period may be further extended with agreement
between the minister and the investor."
Industry Minister Christian Paradis is heading a review of the state-owned CNOOC's US $15.1 billion cash offer to buy Calgary-based Nexen which will scrutinize the deal's net benefit to Canadians.
"In making his determination, the minister carefully considers the plans, undertakings and other information submitted by the investor in light of the net benefit factors listed in section 20 of the Act," said Hebert.
Federal NDP energy critic Peter Julian said his main concern is the review be transparent.
"I think it's a wakeup call for the Harper government and I feel very, very strongly it simply cannot be rubber-stamped behind closed doors, which is what the Harper has done in almost all the cases," he said.
"We want to see an open and transparent review and we need the government to bring forward that net benefit test that's been so vague and so difficult to define.
"This particular takeover has ramifications for communities, it has ramifications for the Canadian economy and ramifications for the Canadian environment as well."
The review will look at six main factors:
* The effect of the investment on the level and nature of economic activity in Canada, including employment, resource processing and the utilization of parts, components and services produced in Canada.
* The degree and significance of participation by Canadians in the Canadian business.
* The effect of the investment on productivity, industrial efficiency, technological
development, product innovation and product variety in Canada.
* The effect of the investment on competition within any industry or industries in Canada.
* The compatibility with national industrial, economic and cultural policies.
* The contribution of the investment to Canada's ability to compete in world markets.
Along with Industry Canada, several other agencies are involved, said Hebert.
"As standard practice as part of the review process, the federal department with policy responsibility for the sector involved, the provinces where the Canadian business has significant activity and the Competition Bureau are consulted," she said. ILLUS: photo by Mike Drew, Calgary Sun