China Wants Your Resources
From Profit Confidential
January 18, 2013 - 1:48am
In somewhat of a surprise move, the Canadian government allowed the $15.1-billion takeover of Canada-based Nexen Inc. (NYSE/NXY) by CNOOC Limited (NYSE/CEO) to go through. Initially, it was thought that Canadian regulators and the government would axe the deal, citing the security concerns of a takeover of oil reserves by the Chinese government-controlled CNOOC. Canada has rejected takeover bids from Chinese companies in the past, citing the need to safeguard its mineral and energy resources.
While the Nexen deal doesn’t mean there will be more deals from China to come, it does show the country is hungry to gain access to raw material reserves around the world, as the country is looking to double its gross domestic product (GDP) by 2020. (Read “China’s Golden Years Still to Come.”) China will continue to target global reserves, which in turn, translates into internal exploration ...Continue reading this article »