CNOOC's bid for Canadian shale company, Nexen, has cleared the latest legal hurdle as it moves towards completion.
The $15.1bn bid still faces considerable legal and political barriers before the Chinese oil giant can complete one of the industry's largest ever commercial deals. However, one major hurdle was cleared after The Court of Queen's Bench of Alberta gave the deal the legal go-ahead from the Province's perspective.
The news was the second major step forward in a matter of days after Nexen's shareholders had also voted in favour of the potential deal at a meeting in the company's Calgary Headquarters.
However, the acquisition still has some way to go before completion. The deal requires approval from government regulators in Canada, the US and China, with Canadian authorities declaring a 30-day extension on its review of the bid, with the option to lengthen the period further if required. The proposed acquisition also faces considerable political pressure across North America. Canada's main oppostion party is opposed to the deal and it has already become a bi-partisan issue of contention in the US.