Advising on China’s largest cross-border M&A deal 

When CNOOC Limited acquired Nexen, the Canada-based energy resource company, the deal, with a value of USD15.1 billion, was the largest in China’s corporate history.
M&A deal

Honson To, Global Lead Partner for CNOOC with the China engagement team

KPMG China was engaged from the start, from performing critical due diligence early on in the process, to providing a broad range of financial, tax and other transaction related assistance through completion of the acquisition.

In all, over 100 KPMG professionals, more than half partners and directors, were engaged in the extremely time-sensitive transaction. “This prestigious engagement demonstrates the ability to deliver on complex, cross-functional and cross-border transactions, and to accomplish it in an extremely compressed time-frame,” said Honson To, KPMG Global Lead Partner for CNOOC, adding that “teams were mobilized in China, Canada, the UK and the US within 24 hours, and the two phases of due diligence were completed in just over three weeks in total.”

Nexen has a diverse footprint, with significant operations in the US, UK and North Africa as well as Canada. So KPMG China joined with the KPMG Oil & Gas Center of Excellence and teams based in Beijing, London and Calgary to provide the global talent and know-how required.

Peter Fung, Chairman of KPMG’s Global China Practice  explains that it has been a truly global effort, including Audit, Tax and Advisory professionals across three continents: “The Oil & Gas network within the KPMG organization enabled us to quickly bring together the international scope of knowledge and skills that the complexity of the transaction required.”

While the transaction is complete, smooth integration of the two extensive organizations continues, with ongoing tax consulting, engaging KPMG professionals from four countries.

“KPMG’s work was critical to the transaction, but this is just the beginning,” said Likun Kuang, finance manager of CNOOC International. “The KPMG team is still contributing significantly toward post-deal integration, including tax and organization structuring.”

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