Nexen surges after hours as Canada OKs deal
BY CARLA MOZEE, MarketWatch
LOS ANGELES -- Shares of Nexen Inc. surged Friday evening after a bid to purchase the independent energy producer was approved by the Canadian government.
U.S.-listed shares of Nexen climbed 15% to $26.99 in heavy volume, with the Canadian industry ministry giving the green light to CNOOC Ltd. of China's offer to buy Nexen.
Under the Canada's Investment Act, "CNOOC has satisfied me that, under existing guidelines, their proposed transaction to acquire control of Nexen is likely to be of net benefit to Canada," said Industry Minister Christian Paradis in a written statement late Friday.
Ottawa had faced a Monday deadline to rule whether the Cnooc-Nexen deal would be beneficial to Canada. China's CNOOC, a state-controlled offshore oil and gas firm, in July offered $15 billion for Nexen.
The rally in Nexen's shares late Friday got underway following reports from Reuters and The Wall Street Journal that Canada was set to give its approval.
Ahead of late trading, the Dow Jones Industrial Average and the S&P 500 index closed higher following a better-than-expected November jobs report. Stocks earlier in the session pared gains after a drop in December consumer sentiment. But the Nasdaq Composite fell 0.4%, weighed by losses in shares of Apple Inc..
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