Earlier this month the Canadian government extended its review of CNOOC Ltd’s $15.1 billion bid to acquire Nexen Inc.
The proposed deal has sparked vigorous public debate around state-owned enterprise (SOE) investment. It has also brought to light the lack of clarity around what the federal government defines as “net benefit” when applying the Investment Canada Act.
But as China’s demand for energy continues to grow, so too will its overseas investment, and the Canadian government will need to fashion a policy to guide future takeovers bids by foreign state-owned companies.
Brian Sylvester is a noted writer, editor and guest blogger specializing in the mining and natural resources sector.
In his latest article for Firmex, Brian analyzes the current wave of Chinese M&A activity in the Canadian mining sector, and what will drive the next wave of investment in the coming years.
Read Brian’s full article “China Deeply Vested in Canada, With More to Come,” on Mining.com.