China welcomes Canadian approval for CNOOC takeover

A Foreign Ministry spokesman on Monday said China welcomes a decision by the Canadian government to approve the China National Offshore Oil Corp.'s (CNOOC's) takeover of Calgary-based oil and gas producer Nexen Inc.

"We welcome the decision made by the Canadian government, and we wish the acquisition will go smoothly and bring benefits to both sides," said spokesman Hong Lei.

Hong made the remarks at a regular press conference while commenting on a Canadian government announcement made on Friday regarding the decision.

"The two companies made the decision on their own and based on business principles," Hong said.

In response to Canadian Prime Minister Stephen Harper's statement at a news conference held after the announcement that the approval should be viewed as "the end" rather than the "beginning of a trend" and that other foreign takeovers will face greater scrutiny, Hong said mutually beneficial cooperation between China and Canada should be supported.

Kevin Reinhart, Nexen's interim president and CEO, said in a press release published on the company's website that the approval was an "important milestone in the process" and confirms the company's belief that the transaction will provide a number of significant benefits for Canada and Nexen.