Canada’s Nexen, with offshore operations in the U.S. and U.K., has agreed to be acquired by China’s CNOOC for $15.1 billion.
NEW YORK (CNNMoney) — A major Chinese oil producer has gained a big toehold in North America’s energy market with a $15.1 billion acquisition of a Canadian company.
Calgary-based Nexen Inc. said Monday that it has agreed to be acquired by China’s CNOOC Ltd. in a cash transaction. The deal values Nexen (NXY) shares at $27.50 each, a 61% premium from Friday’s closing price of $17.06.
Nexen’s assets in North America include exploration and development in the Gulf of Mexico and shale oil development in British Columbia.
The company also has operations in the North Sea off the coast of Great Britain and off the coast of Nigeria.
Nexen said the deal will require the approval of regulators, including those in the United States. The deal is expected to close by the end of the year.
CNOOC is a familiar name to Americans. In 2005, Congressional pressure ended a bid by the company to buy California’s Unocal, which was ultimately sold to Chevron (CVX, Fortune 500). (Related article: 10 most powerful businesspeople in China)
Shares of Nexen rose 56% in premarket trading to within $1 of the proposed acquisition price. 