China’s CNPC to buy Canadian PetroKazakhstan for US$4.2 billion

State-owned China National Petroleum Corp. said Monday that the board of directors of PetroKazakhstan, a Canadian firm that is a major oil producer in neighboring Kazakhstan in Central Asia, has accepted a US$4.2 billion (euro3.4 billion) takeover offer.

The deal, which requires approval by PetroKazakhstan shareholders, would add to a series of foreign oil and gas acquisitions that Beijing hopes will secure energy supplies for its booming economy, AP informs.

PetroKazakhstan shareholders are expected to vote in October, CNPC said. "The Board of Directors of PetroKazakhstan has recommended that its shareholders accept" the offer, the Chinese company said.

The announcement comes just days after another state-controlled Chinese oil company, CNOOC Ltd., withdrew a multibillion-dollar bid for U.S. oil and gas producer Unocal Corp. after opposition by critics who said it might threaten American national security.

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