Product details

In August 2005, the Chinese oil company China National Offshore Oil Corporation Limited (CNOOC Ltd) withdrew its $18.5 billion takeover offer for Unocal, a California based energy company. It acknowledged that its bid had created broad political and public antagonisms in the United States and had little chance of being completed. CNOOC Ltd''s withdrawal from the bid ended a hotly contested takeover battle between CNOOC Ltd and Chevron, the huge American energy company. Both companies were vying to acquire Unocal''s oil and natural gas assets, much of which was in Asia. The Unocal shareholders on 10 August 2005 voted in favour of Chevron, in spite of a higher bid by CNOOC Ltd. The case details the political climate that prevailed during the bid. It provides scope for discussion on how the political environment could impact the fate of a business deal and also the future of Sino-American relations on account of the failed bid.