Nexen Deal

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Brachina
Nexen Deal

Can someone explain why its okay for the Chinese government to national our oil via the Nexen deal, but if the Canadian Federal Government did the same the right and,tge,Premiers would be shitting bricks. So it will be the Chinese Government that gains the lions share of the profits, while the Federal Government get none, and the provinicial government gets a tiny bit via royalties.

Please I'm confused here, it provinicial juristiction unless it other countries governments?

knownothing knownothing's picture

Exactly.

Boom Boom Boom Boom's picture

The Nexen deal gives China a huge footprint in I think four other countries besides Canada - Nexen's Calgary office just happens to be the headquarters of a worldwide business.

It's interesting,  though, to see so much Chinese investment in the tar sands - they must be 100% certain that pipelines through BC will be built, and not just Northern Gateway.

autoworker autoworker's picture

I believe that China may have some influence in B.C.'s export markets.

Boom Boom Boom Boom's picture

10% of Nexen's assets are in the USA, and Senator Charles Schumer is moving to block the deal - and former Speaker Nancy Pelois is voicing concern as well.

Brachina

What can the US do, its a Canadian company, at best they can force the company to sell off its American assets.

Nice it feels like the US is fighting China to see who gets to pillage Canada.

Boom Boom Boom Boom's picture

I think Schumer has written to Harper asking him to delay approval of the sale until it's fully investigated. Meanwhile,

New Democrats ask for public review of Nexen takeover .

Brachina
Brachina

http://www.financialpost.com/opinion/columnists/Nexen+sale+allowed/70044...

This may surprise people but I support the Chinese government buying Nexen.

Why? Because when When the Chinese flip us the bird and do what they want, the NDP can come in and take back Nexen as owned by the federal government and the Tories can't say a thing about because its already nationalized by the Chinese and the Albertan government can't say anything because the NDP can now claim its a matter of national security and international trade, Federal Juristiction. It would still need to meet Albertan safety laws,of course.

Plus it would gives us more wiggle room when creating other crown corporations.

Boom Boom Boom Boom's picture

Nexen takeover prompts insider trading allegations 

'Trades highly suspicious,' U.S. Securities and Exchange Commission says

The U.S. Securities and Exchange Commission has moved to freeze the assets of several Chinese-based investors alleged to have illegally profited from the $15-billion takeover of Calgary-based oil company Nexen.

The regulator says Hong Kong-based Well Advantage Ltd. and other unnamed trading firms were stockpiling shares of Nexen in the days leading up to the July 23 announcement of a $15.1-billion takeover offer from state-owned oil firm China National Offshore Oil Company (CNOOC).

The $27.50 purchase price CNOOC is offering for Nexen shares represents a 60 per cent premium to what the company was worth before the offer became public.

The SEC says Well Advantage bought 830,000 shares of Nexen on July 19 and made a paper profit of $7.2 million after the deal was announced a few days later. Other Singapore and Hong Kong-based traders bought 676,000 Nexen shares in the days before the announcement, and after selling their shares, pocketed $6 million.

"The timing, size and profitability of these trades, as well as the lack of prior history of significant trading in Nexen stock in the account, make these trades highly suspicious," the SEC said in a U.S. court filing.

A judge granted the regulator permission to freeze up to $38 million worth of assets belonging to the trading firms in question.

Boom Boom Boom Boom's picture

Regulatory obstacles ahead - NDP wants public review after SEC alleges insider trading.

excerpt:

Nexen announced on July 23 that its board had unanimously approved a $15.1 billion bid by CNOOC. A document outlining the terms of the acquisition on CNOOC's website states that as part of the proposed deal, the company would have the head office for its North and Central American operations in Calgary. It would also keep Nexen's current management team and employees.

Industry Minister Christian Paradis confirmed on July 23 that the acquisition would be subject to review under the Investment Canada Act. That process uses the government's "net benefit" test, where Mr. Paradis gets to decide behind closed doors whether certain investments are of net benefit to Canada. The Competition Bureau would also do a review of the proposed transaction.

Nexen also has offshore operations in the UK North Sea, offshore West Africa and in the Gulf of Mexico, meaning not only would the Canadian government need to approve the bid, but also the governments in China and the US, and possibly others as well like the European Union, according to the Chinese firm's document.

Both the US Embassy and the British High Commission declined to comment. The EU delegation did not respond to a request for comment before print.

The bid has also made headlines in the United States, where some lawmakers have been calling on the US government to block the bid unless certain conditions are met. Democrat Congressman Ed Markey has sent an open letter to US Treasury Secretary Tim Geithner raising a red flag over the proposed acquisition.

Mr. Markey is calling on the US government to block the deal unless "parties to the merger agree to pay royalties to the US taxpayer on all oil produced off American shores or relinquish any ownership interests in these leases."

His office did not respond to a request for comment before print.

US Democrat Senator Chuck Schumer has also said the deal should be used to get more access for American companies to the Chinese market.

Barry Carin, who has held several government portfolios including assistant deputy minister for the Department of Foreign Affairs and International Trade, said American lawmakers could insist that any assets under control of US legislation be divested and sold.

But few people know whether US government officials would actually follow through, he added.

"The fact that one or two senators say something doesn't mean that the government and the Congress is going to act," said Mr. Carin, who is also a senior fellow with the Centre for International Governance Innovation.

"The concern across the border is that if there is a contract to sell resources to China, then they can't be sold to the US...they might have to buy from less secure sources of supply," he said.

To add to all the necessary approvals, the US Securities and Exchange Commission also reported on July 27 of alleged insider trading before the acquisition announcement by Hong Kong-based Well Advantage Ltd. and "other unknown traders."

That has the NDP calling for greater public scrutiny over the bid. In a July 31 press release, industry critic Hélène LeBlanc called for the Conservative government to "agree to hold a thorough, transparent and public review of this takeover," and natural resources critic Peter Julian said public hearings would allow the government to "show they are on the side of Canadians, not the company."

Brachina

The US may get the royalties, but more access to China's markets won't happen, not when the.cash strapped American government is so easily bought.

Boom Boom Boom Boom's picture

Meanwhile,  Tories quietly table Canada-China investment treaty  Deal could be adopted without debate

This comment appeared on my Facebook feed:

"An investment treaty with the Harper government and China that protects "investor" rights at the expense of human, environmental, and labour rights which undermines our fundamental democratic processes is criminal and illegitimate without votes or debate from the public or parliament."

kropotkin1951 kropotkin1951's picture

Getting into bed with a fascist government in Honduras is not worthy of opposition but then they are not really evil unlike the Chinese government.

Brachina

Peggy Nash call this deal what it really is, a forgien government nationalizing our resources.

If the federal NDP tried to nationalized the oil sands the pundits would scream and rage at the "socialist hordes". The Communist Chinese Nationalize our resource and pundits call it investment.