Canada’s industry minister waiting for official proposal from Chinese company on Nexen takeover

CALGARY – Canada’s industry minister says there is no deadline for his decision to approve or reject a Chinese state-owned company’s multibillion-dollar bid for Calgary-based Nexen Inc.

While speaking in Calgary, Christian Paradis (PAIR’-ah-dee) said his department is still waiting for a formal proposal from China National Offshore Oil Company before a review can begin.

He said the bottom line is that the takeover has to provide a net benefit for Canada.

The Chinese company’s proposed all-cash takeover of oil and gas producer Nexen (TSX:NXY) is a friendly bid.

It offers shareholders a 60 per cent premium on their holdings in a US$15.1-billion deal.

Paradis said it is important not to prejudge the review’s outcome.

Stephen Harper’s Conservative government has rejected two foreign takeovers during its time in office. The most notable was a bid by Anglo-Australian mining firm BHP Billiton for Saskatchewan’s Potash Corp. (TSX:POT) in 2010.