Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian oil and gas company Nexen’s (TSX,NYSE:NXY) shares climbed over 2% yesterday, closing at Cdn$27.48 as it announced that U.S. regulators had approved the $15.1 billion takeover of the firm by China’s state-owned CNOOC Ltd.
Tuesday’s authorization from the Committee on Foreign Investment in the U.S. (CFIUS), a multi-agency body that evaluates transactions that could affect the country’s security, gives Nexen “all of the requisite approvals to proceed to close”, the company said in the statement.
Despite the takeover had already been guaranteed in Canada and Europe, Nexen needed the CFIUS endorsement as the company has U.S. interests.
This is the third Chinese deal to be ratified by the U.S. body in recent months, and follows clearances granted for BGI-Shenzhen’s bid for Complete Genomics, and Wanxiang Group’s bid for A123 Systems, a car batteries manufacturer.
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Comments
Jane
THat is quite a big advancement for the company. Now we wait to see if they make a success of the project. http://www.senmin.co.za