CNOOC comes to CanadaPosted: December 18, 2012
The Chinese public enterprise CNOOC has been authorized by the Canadian government to buy the Canadian energy company Nexen Inc. The particular vetting from Stephan Harper’s Ottawa has new limitations on the future takeover bids of the Canadian enterprises by the foreign concerns. The Harper administration specifically desires checking any new takeover bid emanating from foreign public firms. The responses from the two resurgent Asian economies are distinct. There is an optimism in China that the Canadian approval would be of benefit to multiple national & international stakeholders. About the putting of new Canadian breaks to limit certain foreign acquisitions, the Chinese response is carefully measured, devoid of any overt criticism. Apparently, Beijing is, for the time being, mindful of consolidating its gains in Ottawa; at the same time, it is tactfully de-emphasizing the occurrences of related problematic matters from its official discourse. For the moment, it is hard to find a fault with the related Chinese diplomacy.
To the contrary, there is a discernible discomfort in New Delhi. Mani Shankar Aiyar, a former minister of petroleum and senior figure in the ruling Indian National Congress, adds, “I welcome the current decision to allow the Chinese to purchase the asset [Nexen Inc.] and I hope it wakes Indian companies up to the possibility of going in there – and if they do, and are not permitted, we have to ask on what basis this clearance is being given. I can understand need to preserve assets … but this is against the liberal traditions of Canada to take a position like this.”
Notwithstanding the views in Beijing and in New Delhi, sight should not be lost to the related tightrope political action in Ottawa.