On Monday morning, Canadians awoke to big news.
Nexen Inc., the 12th largest energy company in Canada, had agreed to a $15-billion takeover by CNOOC — the China National Offshore Oil Company. This marked China’s largest foreign acquisition, the most substantial buyout by an Asian firm in Canada, and an alarming story, given that the company is fully owned and operated by the People’s Republic of China and its ruling Communist Party.
Nexen shareholders celebrated a 52% increase in the price of their stocks, but what are the implications of this deal for the rest of Canadians? This is a company operated by an often hostile and rogue government, a country actively engaged in market manipulations and a company with a shady record of human rights abuses in its foreign operations — how will this company perform in Canada?