NEW YORK (MarketWatch) -- CNOOC's /quotes/zigman/274848/quotes/nls/ceo CEO -3.72% proposed $15 billion acquisition of Nexen Inc. /quotes/zigman/22952/quotes/nls/nxy NXY +51.47% /quotes/zigman/22967 CA:NXY +51.59% could benefit Canada, according to an analyst. Since Nexen derives only about 11% of its cash flow and 28% of its production from Canada, the company's strong international diversity could make it difficult for regulators to oppose the deal based on its impact in Canada, CIBC analyst Andrew Potter said in a note to clients. The deal could benefit Canada, however, by CNOOC's proposal to put its headquarters in Calgary and listing its shares on the Toronto exchange. Also, CNOOC could build up liquid natural gas facilities more quickly than Nexen could do by itself. The higher investment by CNOOC, along with royalties and taxes paid from such an asset, would benefit Canada, Potter said. The deal would rank as the largest takeover of a Canadian company by a Chinese national oil company, Potter said. He said the deal faces "higher-than-average closing risk but not extreme."
/quotes/zigman/274848/quotes/nls/ceoUS : U.S.: NYSE
Volume: 59,734
July 23, 2012 11:17a
/quotes/zigman/22952/quotes/nls/nxyUS : U.S.: NYSE
Volume: 50.23M
July 23, 2012 11:18a
/quotes/zigman/22967CA : Canada: Toronto
Volume: 24.23M
July 23, 2012 11:03a
Source: http://feedproxy.google.com/~r/marketwatch/marketpulse/~3/RD14GaONdMc/story.aspx
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