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Nexen Agrees to Be Acquired by CNOOC for $15.1 Billion
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Paul, Weiss client Nexen Inc., an independent, Canada-based global energy company with operations in the UK, Canada, Nigeria, the United States and elsewhere, has entered into a definitive agreement under which CNOOC Limited, China's largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world, will acquire all of the outstanding common shares of Nexen for $27.50 per share in cash, in a transaction valued at approximately $15.1 billion. The purchase price represents a premium of 61% to the closing price of Nexen's common shares on the NYSE on July 20, 2012, and a premium of 66% to Nexen's 20 trading-day volume-weighted average share price.
As was widely reported, the deal, once completed, would be the largest overseas acquisition ever by a Chinese company. And as The New York Times reported, the deal comes as companies around the world work to build their holdings in so-called unconventional resources, which include gas-rich hard rock formations.
The transaction, which will be completed by way of a Canadian plan of arrangement, is expected to close in the fourth quarter of 2012, subject to satisfaction of closing conditions.
The Paul, Weiss team advising Nexen on U.S. matters includes corporate partners Andrew Foley, Edwin Maynard and Robert Schumer, corporate counsel Didier Malaquin and international trade counsel Richard Elliott.