Sunday, September 23, 2012

Worries Over Nexen Inc.

The recent bid from a state-owned Chinese company to buy the Calgary-based Nexen Inc. has made headlines across the country in the past 2 months. $15.1 Billion is what has been offered for this company which is active in oil production in Canada, the US, Africa and North Sea. CSIS has warned that it could pose a threat to national security. Technology transfer by the foreigners is one of the major concerns. But I think there are enough foreigners in Canadian companies here in Canada that if any of them wants to transfer any proprietary information, they could easily do that. They do not have to spend $15.1 Billion! They would copy everything for free and send it over electronically or in binders!
But I would not feel comfortable if I was a Canadian and I had to work for a company owned by foreigners in my home-town. Constitution of Iran prevents any foreign company owning any major asset including natural resources and in the first glimpse everyone appreciates that but the revenue gained from natural gas, mines, oil, etc is not mainly given to the people or spent for them! So who cares if there is such a clause in the Constitution. But I do not know about Canada's. I know Tim Horton's was purchased by an American company a few years ago but that is totally different. Will wait to see what the decision will be.
(Photo: Nexen's office in Downtown Calgary)

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