UPDATE 1-Canada says will review CNOOC bid for Nexen
* Industry minister, competition bureau to review deal
* Six factors decide whether of "net benefit" to Canada
OTTAWA, July 23 (Reuters) - The Canadian government and the country's competition watchdog will both conduct reviews of the $15.1 billion offer by Chinese state oil company CNOOC to buy Canada's Nexen Inc, Industry Minister Christian Paradis said on Monday.
"CNOOC has indicated that it will be filing an application for review under the (Investment Canada) Act shortly," Paradis said in a statement.
The Competition Bureau will study CNOOC's takeover of the Alberta-based oil company to determine whether it would lessen or prevent fair competition, he said.
Paradis said his final decision of whether the deal would be of "net benefit" to Canada would be based on the following six factors, which are listed in the foreign investment law:
- The effect on the level and nature of economic activity in Canada, including employment, resource processing and use of parts, components and services produced in Canada.
- The degree and significance of participation by Canadians in the Canadian business.
- The effect on productivity, industrial efficiency, technological development, product innovation and product variety in Canada.
- The effect of the investment on competition within any industry or industries in Canada.
- The compatibility of the investment with national industrial, economic and cultural policies.
- The contribution to Canada's ability to compete in world markets.