Foreign state-owned enterprises will be restricted China obstacles in mergers and acquisitions of state-owned enterprises

Foreign state-owned enterprises will be restricted in mergers and acquisitions

Experts say the revised investment law in Canada is an obstacle to mergers and acquisitions by Chinese state-owned enterprises

Newspaper reporter Zhou Fan from Shanghai

The Canadian Congress is revising the investment law, which will focus on mergers and acquisitions of state-owned enterprises in other countries in canada. July 21st, Ai Minxin, Minister of industry and industry should be invited to visit China's development and Reform Commission (DavidEmerson), said in an interview with reporters in Shanghai. Experts believe that the objective of China's state-owned enterprises in Canada to set up barriers to mergers and acquisitions. Foreign state-owned enterprises in mergers and acquisitions will focus on the review.

David Emerson said, the Canadian Parliament is amending the investment law, will do a threat to the national military and security areas, as well as mergers and acquisitions of sensitive items are reviewed; a striking point is that state-owned enterprises in the new investment law of other countries concerned, and will be the focus of the review.

At present, China's large overseas mergers and acquisitions are completed by state-owned enterprises, so the move will undoubtedly have a small impact on Chinese companies in mergers and acquisitions in canada.

"The completion of any merger, we will be in accordance with the new law review, to see whether it is good for the economy, whether it will endanger national security." AI said. For example, he said, for example, Minmetals and South Dakota, if successful, the government will consider reviewing the merger.

International relations experts said that Canada in dealing with foreign investment is repeated. In fact, in the 70s of last century, Canada began to restrict foreign investment, until the last century in the development of investment law in 80s, the gradual release of foreign investment. Under the current framework of the Canadian investment law, the review is mainly aimed at the amount of more than $250 million in mergers and acquisitions, and the ratio of the review is not high, only less than 3% to 5% of the company will be reviewed.

AI said that the Canadian Parliament to amend the investment law, mainly worried about Canada's natural resources will be controlled by another country. He believes that Canada must understand that the purpose of the acquisition is for commercial reasons or geopolitical, if it is for geopolitical reasons, such a merger is not an investment." AI said that Canada would take measures such as mergers and acquisitions, such as additional restrictions, or to stop the acquisition.

AI, emphasized that the investment law is not for China, Canada or encourage investment from Chinese. In this regard, the NDRC Energy Research Institute experts believe that this issue is very sensitive. Obviously, Canada to change the investment law which reflects at least not baseless slanders, Canada there is a kind of mood, have doubts on cooperation in energy, mineral resources and China aspects, so take hands practice.

When a reporter asked whether there is the prevention of the occurrence of Canada, similar to the CNOOC acquisition of Unocal Corp such a move, David Emerson said, this is the thing, I will not comment. Oil tanker cooperation has made substantial progress in cooperation

Ai Minxin also told reporters that in January 20th this year, after the Sino Canadian joint energy cooperation statement issued in twenty-first Century, the two sides have been substantial progress in Alberta, Canada oil sands cooperation. At the government level, the focus is on the development and construction of oil sands development and pipeline construction. He said: "we have set up a joint strategic working group with the Chinese side, specifically responsible for the oil cooperation between the two countries, the Canadian government allocated special funds to support."

Relevant experts in petroleum exploration and Development Research Institute told reporters that oil sands is a kind of conventional energy, China in related technology is a blank, therefore, cooperation between the two sides on the basis of the technical exploitation is a prerequisite for future large-scale cooperation.

And at the enterprise level, since the signing of the statement, China's three largest oil group in the oil, Sinopec, CNOOC also gains. In April this year, CNOOC invested $122 million to buy Canada MEG energy 16.69% stake in the company, plans to 2008 from the north of Alberta oilfield oil sands on the extraction of 25 thousand barrels of crude oil; in May, Sinopec International Petroleum Exploration and development company in the petroleum company and Canada synenco (Synenco) signed a cooperation agreement jointly the development of Alberta province is located in the Arctic light (North - ernLights) oil sands project. In addition, in April, PetroChina and the Canadian pipeline operator Enbridge on the construction of $2 billion 20 million oil pipeline agreement.

David Emerson said, because the Canadian economy is export-oriented economy, at the same time, the 80% is exported to the United States, therefore, a principle of Canada is based on exports to the United States is not reduced, the positive development of diversification, and the country of choice is Chinese. He said he hoped the two sides can deepen the depth and breadth of cooperation. He said that the visit is also seeking cooperation in clean energy such as hydrogen fuel cells, space technology (satellite technology), uranium, biotechnology. In addition, recently reached an agreement in the field of aviation, tourism open in the final negotiations, a science and technology agreement is also finalized.