After Canada, US Thumps Up Nexen-CNOOC Deal

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By IBTimes Staff Reporter | February 13, 2013 7:41 PM EST

The U.S. government has approved the $ 15.1 billion takeover of the Canada-based global oil and gas company by China's state owned company CNOOC. Canada-based global oil and gas Company Tuesday said that it had received approval from the Committee on Foreign Investment in the United States.

The U.S.'s approval is the last hurdle for the state-owned Chinese company -- CNOOC -- to take over the global oil and gas company.

The Calgary-based oil and gas company's takeover by China will be the biggest foreign take-over in Canadian history.

Canadian Prime Minister Stephen Harper last year approved the deal amid criticisms from environment and human rights activists throughout the country.

In a letter to the Prime Minister, Canadian Member of Parliament Russ Hiebert sought the response of Chinese government if a Canadian company wanted to make the same investment in China.

"I am concerned that our trading and investing relationship with China is one-sided and that an investment proposal of a similar magnitude and nature by a Canadian company in China would simply not be welcomed by the Chinese," said Russ Hiebert.

Following the approval, the prime minister was said to have vowed not to allow any state-owned company to buy such big share in the future.

"When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments," said Stephen Harper.

According to Reuters, Edward Markey, U.S. legislator was critical of his government for backing up the Nexen deal.

"Chinese government-owned oil corporations should not be allowed to drill for American oil in the Gulf of Mexico without paying a dime in royalties to U.S. taxpayers," Reuters quoted the U.S. legislator as saying.

After the U.S. government gave the green signal, Nexen's share rose 2% Tuesday.

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