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
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
In late July, Unocal expressed concerns about dealing with
the Chinese company after Chevron upped its bid from $16 billion to $17
Unocal shareholders will vote on the Chevron offer on Aug.
10. If approved, the deal could close immediately following the vote.