CNOOC's takeover of Nexen expected to open two-way street

The friendly $15.1 billion bid by CNOOC Ltd for the Canadian energy company Nexen Inc gels with the Canadian government's pleas for foreign money to develop its costly oil sands of northern Alberta, according to industry experts, giving it a very definite chance of winning approval.

Reacting to what is likely to become China's largest overseas acquisition to date, the Canadian government has said only that it would review the bid by CNOOC based on its laws on foreign investment.

But lawyers, analysts and insiders say there are good reasons for the deal to go ahead, and few reasons to block it.