China’s largest energy company Cnooc (CEO.NYSE, 0883.HKG, NC2A.FRA) accepted employment conditions proposed by the Canadian government as it negotiates for approval to takeover Nexen (NXY.NYSE, NXY.TSE, CXY.FRA), Bloomberg reported, citing unnamed sources. The agreement came after Canada extended its review process of the US$15.1 billion bid twice amid resistance on human rights and policy grounds. Canadian government negotiators took onboard conditions proposed by Alberta Premier Alison Redford in October, which included covenants that Canadians be appointed to a minimum of 50% of Nexen’s board and management roles. Outstanding matters for discussion include Cnooc’s connection to the Chinese government and capital spending ratios, an unidentified source said. Nexen’s share price increased 7% last week, the largest weekly increase since the bid process started in July, signaling growing investor confidence that the transaction will be approved.
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