House panel sets hearing on Unocal takeover

| 7/8/2005

The House Armed Services Committee wants to know if bid by a Chinese government-owned oil company to take over American oil company Unocal is a threat to national security.

To find out, the committee has scheduled a hearing July 13 to review the situation.

The China National Offshore Oil Corp. made international headlines in June when it announced an $18.5 billion bid to takeover Unocal, which was already considering a takeover bid from Chevron Inc.

In the ensuing weeks, Unocal has put the Chevron bid on hold while it reviews the Chinese bid. Unocal officials said they would consider the bid if the Chinese pledged to meet regulatory requirements set out by the U.S. government.

Both Republicans and Democrats petitioned President Bush in to review the transaction in early July, but on July 7 Bush declined to comment or get involved in the official review of the bid.

The U.S. Committee on Foreign Investment must also approve any final transaction of this nature.