The Canadian government has approved CNOOC's $15.1 billion bid to acquire Alberta oil sands producer Nexen, the largest foreign takeover in Canada's history.
But Prime Minister Stephen Harper made it clear he's not entirely comfortable with state-owned enterprises acquiring Canadian firms, saying today's deal marks "not the beginning of a trend, but rather the end of a trend."
"To be blunt," Harper reportedly said, "Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead."
Though Nexen is headquartered in Calgary, Alberta, it has operations in the North Sea, the Gulf of Mexico and West Africa. Today's Canadian government announcement follows news that the European Commission approved parts of the CNOOC deal under its jurisdiction.
The U.S. must also review the deal, though a decision has not yet been made.
"I have serious national security concerns with the Chinese government, acting through one of its corporations, purchasing a company that will give it control over significant U.S. oil and gas resources," U.S. Republican Senator James Inhofe said last summer.
Should the deal be blocked in Washington, CNOOC's takeover would still go ahead, with some modifications, University of Ottawa law professor Debra Steger told Maclean's Magazine.
"If the investment is not ultimately approved in other jurisdictions," she said, "Nexen and CNOOC may have to restructure their overall deal relating to Nexen’s assets in those countries."
Shares of Nexen surged today after the Canadian government's announcement. So too did Canada's dollar, relative to the U.S. dollar.
Chinese state-owned companies have been the subject of much debate in Canada over the past year. In a Tyee investigation from last Feburary, Andrew Nikiforuk wrote that Sinopec, another major oil and gas firm owned by the Communist government, "has a long record of corruption, human rights violations, environmental pollution and doing business with terrorist-linked governments."
The Harper government also approved the bid by Petronas, owned by the Malaysian government, to take over natural gas producer Progress Energy -- a deal which it had earlier rejected.
Geoff Dembicki reports on energy and climate change for The Tyee.
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Rolly-polly
23 weeks ago
RIOT
It's time for physical resistance from this government.
Fiat lux
23 weeks ago
What's the surprise ? It was
What's the surprise ? It was quite obvious that Harpo will go for it, because it is "foreign investment".
I'll give 80% that he'll also order his trained seals to pass the FIPA.
Ed Deak.
Fritz
23 weeks ago
Grease
Harper picked David Lloyd Johnston to be governor general AFTER he appointed him in 2007 to be the person most responsible for the fact we wasted $14 million on a public inquiry to discover what we already knew about Brian Mulroney—that he was a pathological prevaricator of the first order—but NOT what we actually wanted to know—which is who really got how much of that $20-million in Airbus grease money?
We have to wonder how much Chinese corporate grease has been passed to the Cons.
This makes the Mulroney mafia look like a pushcart operation.
catchingupagain
23 weeks ago
The junkie's last fix? The syringe plunges another anemic vein..
oops, Harper did it...again...again...
http://www.bloomberg.com/news/2012-12-07/canada-approves-both-cnooc-nexen-petronas-progress-bids.html
The 'net benefit' to Canada seems less difficult to define than to find a party or minister who is willing to defend it.
The Canada Investment Act should have triggered ministerial response when Caterpillar shut down London Ontario's diesel-electric locomotive plant in January of 2012 as the equipment was valued at well over the 300,000 000 $ threshold. Ministers seem to be responsible not to the laws which protect Canadians and industrial knowledge, infrastructure and labor skills, but rather the management policy their 'leader' would have. The CEO of Cat, Doug olberhelman, was awarded for their increased efficiencies, a 60% raise for that fiscal year, up from 10.6 million, to 16.9 million dollars.
As the 21 century stumbles through the mismanagement of finance that blew out as the 2008 credit crisis and the failure to prosecute for the securitization and robo-signing control frauds, it seems unlikely that Canada has learned anything at the institutional level other than how to squeeze close eyes, or squint to glimpse something appealing to their own view of what can be seen as the next best thing. Those who signed onto SinoForest would well have benefitted Canada by insisting, after that debacle, that a Federal Regulator be positioned in Canada, the better for timely oversight and cultivation of due diligence as values of a Canadian prosecutorial and protective united front, against policy lapses like the failure to uphold the Canadian Investment Act.
How many Temporary Foreign Workers are involved with dubious recruiters? In Dubai where unions and collective bargaining are prohibited by law, it appears some 3 million workers could be called indentured slaves.
http://www.youtube.com/watch?v=gMh-vlQwrmU
It is said that globally there are now 27 million slaves up from some 5 million 100 years ago. The Tyee found fee requests for TFW entering Canada from China. So, we know 'human trafficing is being conducted as part of the labor system. When will the Canadian legal system mature to engage with the direct and indirect consequences of 'open for business' policy promoted by Harper and his ministers?
Van Isle
23 weeks ago
Yep, figured this would
Yep, figured this would happen. Wasn't it not too long ago that the head of CSIS warned us of certain Governments who had too much influence here in Canada? It's now obvious that the man was talking about our own Government. As I have written before; Mr. Harper, can you please repeal the capital punichment law and bring back the death penalty. We may want to hang some treasonous politicians in the future.
Fiat lux
23 weeks ago
India alone is supposed to
India alone is supposed to have 15 million slave labour kids and if a piece of garment costs .02 cents more from the Bangladeshi slave labour factories, where workers make $45./mo. the wealth creating foreign investors move their factories somewhere else.
No wonder Harper wants to make "free trade" rackets with such slave labour economies, all in the name of "economic efficiency", of course.
Not to mention the lucrative directorships waiting for the government insiders. Mulroney sure as hell has done well with them and they all want to follow his steps to "wealth creation"
Ed Deak.
Cool Hand
23 weeks ago
So What Do People Here Care?
The federal NDP and its supporters wants to basically shut-down the oil sands due to:
1. "Dutch Disease";
2. Environment Degradation;
As for the Petronas take-over of natural gas producer Progress Energy, the federal NDP opposes fraccing, the only way that Progress Energy will be able to retrieve it's shale gas in NE BC's Montney region.
So based upon federal NDP policy... Canadian shareholders have just pocketed $20 billion (including the Canada Pension Plan) while the foreigners have just bought a pig-in-a-poke.
NDPer's should therefore be rejoicing in the streets with that financial windfall for Canadians in exchange for nothin' for foreigners based upon federal NDP policy.
Nothing to see here folks... time to move on.
Fritz
23 weeks ago
Do you want your kids to be
Do you want your kids to be familiar with China's new leadership as they slowly absorb Canada?
Let's face it China's going to be calling the shots soon and by the time your kids are adults it will still be the same group of draconian bureaucrats in charge.
So why not educate them the fun way?
http://www.cbc.ca/player/Shows/Shows/The+Rick+Mercer+Report/ID/2312730077/
Hugh
23 weeks ago
I wonder how the China-FIPA
I wonder how the China-FIPA will work in all this. My understanding is that the Govt is still thinking about the FIPA.
Fiat lux
23 weeks ago
Most, or all, the thousands
Most, or all, the thousands of workers on the tar sands will be coming down with the worst cancer epidemics in Canadian history.
With some of the deadly poisons found in the lakes 50 km from the sites, it is obvious that all the workers are breathing them in every day, with the worst consequences.
Edmonton Journal Nov.14/2012.
Ed Deak.
crankypants
23 weeks ago
New political party
Welcome to the new political party governing Canada, the Conservative-Communist Coalition.
Rolly-polly
23 weeks ago
cool hand
We can run these resources WITHOUT the help of `communist` governments. That`s the point. man cons are lazy. Never want to work themselves.
Hakuin
23 weeks ago
The end of the trend
For peasant scum getting in the way of their betters. Kneel, Canadian serfs, you WILL learn your place.
(Or we could do something)
Hugh
23 weeks ago
Harper says: "Canadians have
Harper says:
"Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead."
WTF do you think you just did?
morechatter
23 weeks ago
Obama approves Keystone pipeline
But first Harper must push the Chinese deal through before the announcement.
RockyRacoon
23 weeks ago
So does Enbridge get a pipeline to Kitimat?
that oil is still landlocked.
RR
bcguy
23 weeks ago
Won't happen again until the
Won't happen again until the next time
lowball
23 weeks ago
One percenters
This is NOT about more jobs and benefits for Canadians. This is about more money for the one percenters. It's also about increased revenue for federal coffers, who will give it back to corporate welfare bums anyway. Chairman Harper needs to go.
nutsnbolts
23 weeks ago
Let us make Harper and his regime....
the end of the trend.
Hanging is too kind.
nutsnbolts
23 weeks ago
Obama and Harper....
both treasonous scum.
Dejavu
23 weeks ago
Quote: Obama and Harper.... both treasonous scum.
yes, but puppets.
They got a closet full of those.
Dressed up and make upped to fit the times and circumstance...
They may look cute or not but follow the money the strings to their masters.
ken280
23 weeks ago
Conservative-Communist Coalition.
This is cool hands new party! I thought he look a little like one after all the tries to get that to stick on the NDP. The CC&C sounds like a rail road in BC,like the man said nothing to see here and move on!just like a commie cop!This is the new future shock! 2012