Sunday, July 10, 2005
BusinessWeek Thinks That China/Unocal Deal Is OK
You gotta giggle at some of the lip service they pay to the regulatory process. This passage really caught my eye:
First would be to make sure the Chinese government, which controls CNOOC parent China National Offshore Oil Corp. and the banks financing its Unocal bid, cannot unfairly subsidize CNOOC's future energy exploration or pricing efforts to the detriment of American competitors or provide it with below market-rate financing that is unavailable to U.S. companies.
OK, the Chinese government won't be able to subsidize exploration efforts? Sure, right. They're a Communist country! I'd like to see CFIUS do something about that.
Anyways, I do agree with BW that this won't be the last deal of this type, so set some rules now and live by them. Hopefully those rules manage to strike a balance between strategic security and short-term profit, instead of giving away our resources for the sake of a multi-billion-dollar hand-out to stockholders.