CNOOC’s (CEO.NYSE, 0883.HKG) buyout of Canadian oil and gas producer Nexen (NXY:TSE) will face scrutiny from Canadian and US politicials uncomfortable with China’s increased holdings of the continents energy assets, Reuters reported. Despite the majority of Nexen’s assets being located outside Canada, many members of parliament have expressed strong disagreement with the deal. “I’m never a fan of state ownership of resources, particularly in China’s case,” Alberta MP Rob Anders said, adding to a chorus of bluntly worded opposition. Nexen shareholders were expected to take CNOOC’s offer of US$27.50 per share with little objection. Before the offer, shares sold at US$17.06 on the New York Stock Exchange, and the Canadian company had been underperforming with many of its assets. Nexen’s share prices have hovered well below CNOOC’s offer due to the fear of governmental objections.
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