China's Cnooc offers a record $15.1 billion for Canada's Nexen

Cnooc, one of China’s three major oil companies, struck a deal yesterday to buy Canadian oil and gas producer Nexen for $15.1 billion in the biggest-ever cross-border deal from Asia ex-Japan.

The Chinese company will pay $27.50 a share in cash for all of the outstanding common shares of Nexen, which is based in Calgary, Alberta. The transaction will be funded by Cnooc’s existing cash resources and external financing.

The purchase price represents a premium of 61% to the closing price of Nexen’s common shares on the New York Stock Exchange on Friday, and a premium of 66% to Nexen’s average share price during the previous...