The Wall Street Journal reported that both Nexen Inc. (TSX:NXY,NYSE:NXY) and CNOOC Ltd. (NYSE:CEO) believe that CNOOC’s $15.1 billion takeover offer for Nexen will go through by the fourth quarter of this year.
As quoted in the market news:
Nexen’s comments came with the release of its third-quarter results, which showed a 71% drop in profits as a result of lower production volumes and higher operation costs.
The Cnooc takeover is currently under review by the Canadian government to determine if it provides a so-called net benefit to the country’s economy. The government recently extended its review period to early November, and has suggested it could be extended further.
Get Our Expert Guide to Oil Investing FREE!Download this FREE Special Report, Oil Investing: Oil Price Forecast and Oil Deposits Around the World