Nexen takeover proposal concerns Calgary charities

Shareholders of Calgary-based Nexen Inc. havevoted to approve a proposed Chinese takeoverof the company by China National Offshore Oil Company.

However, the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.

But thepossible sale of the energy companyhas some Calgary charities concerned about the long-term impact on the local community if the takeover is approved.

Debbie Newman, executive director of the Calgary Drop-In Centre, said that Nexen has donated more than a million dollars and countless volunteer hours to the facility.

"Nothing's guaranteed unfortunately, and although we have received tremendous support through Nexen, we just don't know," she said.

"We are hopeful they see the value that happens here in Calgary, that Calgary is a place where there is much community involvement."

The centre expects it will have to look elsewhere if it loses financial support from Nexen.

Loren Falkenberg, associate professor at the University of Calgary's Haskayne School of Business, doubts there will be any sudden change.

"I would recommend that they would go forward with the contributions that Nexen's making for a couple of years. And then if they want to create their own identity, they start to explore out and say these are the issues or the causes we really want to address," said Falkenberg.

Federal approval still needed

The deal still requiresregulatory approval,eventhough Nexen shareholders vote in favour of the sale.

CNOOC's offer is currently under a 45-day review by the federal government.

Industry Minister Christian Paradis can approve or block the sale depending on whether the deal will result in a "net benefit" to Canada.