Chinese firm to buy Canadian energy company

October 10th, 2011 - 5:02 pm ICT by IANS  

Beijing, Oct 10 (IANS) China’s energy giant Sinopec has signed a deal with Canadian oil and gas explorer Daylight Energy Ltd. to take over the company for 2.2 billion Canadian dollars (about $2.1 billion), Sinopec said in a statement on its website Monday.

Sinopec will pay 10.08 Canadian dollars per Daylight Energy share through its wholly-owned subsidiary International Exploration and Production Corporation, reported Xinhua.

The deal is still subject to approval by shareholders and regulatory procedures from governments on both sides.

The move will facilitate Sinopec’s ability to further tap the oil and gas businesses in Canada, and Sinopec will fully use existing resources to promote the company’s development, Sinopec said.

International Exploration and Production Corporation focuses on the investment and management of offshore upstream oil and gas, while Daylight Energy produces light oil and natural gas from fields in northeast British Columbia and northwestern Alberta.

The deal is the second such takeover of a Canadian energy company by a Chinese refiner this year, following oil giant CNOOC’s acquisition of Canadian oil sands developer OPTI in July.

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