China’s largest energy conglomerate, Sinopec, has made a bid to buy out an Alberta oil and gas company for $2.2. billion in cash. This bid comes amid a new push by Asian firms to lock up Canadian energy that could soon be loaded onto tankers and shipped across the Pacific. In buying Daylight, Sinopec is cementing a new trend that has seen Asian entities seek great control in their north American investments. In buying Daylight, Sinopec is assuming a newly confident stance in Canada where it has operated since 2005. Daylight now pumps 38,000 barrells a day.
If it succeeds Sinopec will have opened an important door to expland chinese activity in a country whose resources and stability are increasingly coveted by foreign powers.
The Ministry of Industry must approve this deal and it has 45 days to say yea or nay.
Should the Canadian government approve this deal?
What do you think?
Happy Thanksgiving to our merry little band of bloggers. Neil