Chinese company withdraws Unocal offer; Chevron back on track

| 8/2/2005

The Chinese company that made headlines this summer in it’s attempt to buy American oil company Unocal Corp., has dropped its $18.5 billion bid amid heavy political opposition.

The China National Offshore Oil Corp., known as CNOOC Ltd., caused an uproar in June when it announced a bid to takeover Unocal, which was already considering a takeover bid from Chevron Inc.

In the ensuing weeks, Unocal put the Chevron bid on hold while it reviewed 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 House Armed Services Committee also said in July that it was concerned that the potential takeover could pose a threat to national security.

In late July, Unocal expressed concerns about dealing with the Chinese company after Chevron upped its bid from $16 billion to $17 billion.

Unocal shareholders will vote on the Chevron offer on Aug. 10. If approved, the deal could close immediately following the vote.