CNOOC Ltd. has reportedly agreed to management and employment conditions set by the Canadian government as prerequisites to its proposed C$15.1 billion takeover bid for Calgary-based oil and gas producer Nexen Inc. Two sources familiar with the matter said CNOOC, an arm of state-controlled China National Offshore Oil Co., has agreed to reserve at least half of Nexen’s board and management positions for Canadians, along with other conditions recently requested by Alberta Premier Alison Redford, Bloomberg reported. Shareholders of Nexen voted 99% in favor of accepting CNOOC’s takeover offer (see Daily GPI, Sept. 21). But Canadian Prime Minister Stephen Harper has repeatedly cautioned North American money managers against assuming the bid is a done deal, and some polls indicate that a majority of Canadians oppose the deal. The final Canadian say is in the hands of the federal cabinet under the national Foreign Investment Review Act, which gives ministers wide discretion under a “benefits test” for big corporate deals.

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