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 Jeanette Chan, Andrew Foley,
Edwin
Maynard and Robert Schumer, corporate counsel Didier
Malaquin and international trade counsel Richard
Elliott.