Harper says review of Nexen takeover bid requires careful scrutiny

CAMBRIDGE BAY, Nunavut – The prime minister says the proposed takeover of a Canadian oil-and-gas producer by a Chinese state-owned firm must be in the best long-term interest of Canada.

Stephen Harper calls the takeover bid for Calgary-based Nexen a deal with significant implications for the Canadian economy in the short and long term.

Harper says careful scrutiny of the US$15.1-billion transaction deal is required and it will involve a range of considerations and a clear long-term policy direction.

The China National Offshore Oil Company — also known as CNOOC Ltd. — proposed takeover of Nexen (TSX:NXY) was a friendly bid.

Harper says the government will take the time it has to assess the deal and if it goes ahead, it must not just be to the net benefit of Canada, but also in the best long-term interest of the Canadian economy.

Harper made the comments while in Cambridge Bay, Nunavut, as part of his northern tour, which has focused on promoting natural resources development in Canada.