CNOOC Ltd. to buy Nexen Inc.: Implications for Investors
Dayna Linley, Senior Analyst, Toronto
Benjamin McCarron, Director, Asia
The July 23, 2012 bid for Nexen Inc. by CNOOC Ltd. signifies yet
another noteworthy step by China to pursue its national strategy to increase its hydrocarbon supply. In so doing, an environmental, social and governance (ESG) leader, ranked number one out of 156 companies in Sustainalytics’ global platform, is at risk of being taken over by an industry laggard, CNOOC Ltd., ranking 133rd. While it may take several months to close, the deal appears well-positioned to clear its regulatory hurdles and gain shareholder approval. This corporate action alert outlines the proposed acquisition, contrasts the ESG standards employed by the two companies and considers the implications for responsible investors.