IN BRIEF (Page 14)

Oil

CNOOC to pay $15b for Canadian oil producer

China's largest offshore oil and gas explorer, CNOOC Ltd, has agreed to pay $15.1 billion (12.51 billion euros) in cash to acquire the Canadian oil and gas producer Nexen Inc, in the biggest overseas acquisition by a Chinese company.

CNOOC is paying $27.50 for each share for Nexen, which has oil sands operations in the Canadian province of Alberta, shale gas in the province of British Columbia and extensive exploration and production holdings in the North Sea, Gulf of Mexico and off West Africa.

Sinopec buys 49% stake in Talisman UK

The oil refiner China Petrochemical Corp, or Sinopec Group, said it has reached an agreement with Talisman Energy Inc of Canada to acquire a 49 percent equity interest in Talisman's assets in the North Sea for $1.5 billion through its subsidiary.

The transaction between Petroleum Exploration and Production Corp, Sinopec's subsidiary, and Talisman Energy (UK) Ltd is expected to be concluded by the end of this year, subject to regulatory approval from the Chinese and British governments.

Apparel

Adidas to close Suzhou factory

The German sports clothing manufacturer Adidas AG said will close its only company-owned factory in China, signaling a strategic transition by the company to fully subcontracted production.

The factory in Suzhou, Jiangsu province, will be shut down in October this year to allow the company to "realign its global resources", said Chen Qi, a spokesman for Adidas Greater China.

"We will not move the factory anywhere else," Chen said, adding that China, as the company's second-largest market, remains very important to Adidas.

Brokerage

Citic Securities agrees on CLSA deal

Citic Securities Co, China's largest brokerage by market value, has agreed to buy Credit Agricole SA's Asian CLSA unit for $1.25 billion.

Citic Securities, based in Beijing, completed its purchase of a 19.9 percent stake in the brokerage for $310.3 million, the companies said in a statement.

Citic Securities will buy the remaining 80.1 percent in CLSA for $941.7 million subject to conditions, including regulatory approval, the companies said.

CLSA, based in Hong Kong, has more than 1,500 employees in 20 places spanning 13 countries, its website says. It provides services including equity research, trading and asset management and advises on stock sales and mergers.

Economy

IMF calls for reform to reduce risks

China's economy is set for a soft landing even as global headwinds increase, the International Monetary Fund said in a report on July 25 that urged further reform and currency appreciation to rebalance growth and reduce risks.

The report said economic reforms had substantially reduced external imbalances, but at the cost of significant domestic imbalances fueled by its investment-driven growth model.

In a key change, the IMF said the yuan was now only "moderately undervalued", a softening of previous language, in an annual review warning of risks to growth if investment were to slow sharply or if there were a sudden rise in non-performing loans. But it stressed Beijing's ability to handle shocks.

China Daily-Agencies

(China Daily 07/27/2012 page14)