Harper Says Net Benefit Definition to Be Broad for Nexen

Canadian Prime Minister Stephen Harper said his government will make a “broad” review of Beijing-based Cnooc Ltd.’s takeover bid for Nexen Inc. (NXY)

Harper said the main legal test for a foreign takeover is the so-called net benefit test, speaking during an interview in Vancouver with Bloomberg Television’s Erik Schatzker.

“We will be looking at that idea and our definition of net benefit will be very broad,” Harper said. He also said that the bid needs extra scrutiny because Cnooc is state-owned, and that like all reviews, national security issues will be taken into account.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Chris Fournier at cfournier3@bloomberg.net

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