Acquisition of Nexen Inc. (NYSE:NXY) by CNOOC (NYSE:CEO) Hangs in Balance

  on Dec 11,2012 Posted in Business News ,Finance
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CNOOC Limited (NYSE:CEO) is looking to strike a deal in order to acquire majority shares of British based oil company named Nexen Inc. (NYSE:NXY). However, the deal is not finalized in any regard because; Nexen (NXY) is possessing oil extracting and processing operations across various nations worldwide. But, according to UK news resources English government notified the media about its policy of noninterference in featured acquisition deal.

However, NXY is owned by a Canadian firm, which has approved the deal but, due to governmental regulations in US, England and other countries in which the company own operations of oil processing, the process of acquisition is hanging in balance.

Furthermore, the Chinese oil company is willing to pay 15.1 billion US dollars with reference to purchasing Nexen Inc. (NYSE:NXY) operations. Nevertheless, the acquired company holds title to 43 percent of the Buzzard oilfield that is the largest one in UK.

As Nexus own about half of the oil centric operations in UK therefore, almost entire world considers its prevailing prices as standard for settling their own.

During the recent trading activity Nexen Inc. (USA) (NYSE:NXY) held volume of 77.16 million shares with 530.03 million shares outstanding and 529.48 million shares floated in market. P/E ratio of the company was 37.18 and in the past twelve months company scored revenue of $6.79 billion and had $380.49 million in earnings. The stock gave a gross margin of +70.71% whereas operating margin was +24.74%.

Nexen kicked off the trading session at $26.96 and during the session edged up 13.82% and finally settled at $26.77. The latest dividend per share paid to stockholders in recent quarter, also known as div/yield was 0.75% for the firm. Beta value, the measure of stock’s risk in relation to its market or alternative benchmark was 1.51.

The energy sector firm’s top rivals include BP plc (ADR) (NYSE:BP) that plunged -0.19% to $40.99 with the total traded volume of 3.54 million shares and Exxon Mobil Corporation (NYSE:XOM) that dropped –0.21% to $88.41 with the total traded volume of 11.55 million shares.

NXY is ahead of its 52 weeks low with 98.37%. NXY’s last month’s stock price volatility remained 3.59%. The stock price of NXY is moving forward from its 20 days moving average with +9.01% and remote positively from 50 days moving average with +8.20%.



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