Sailing Through the Storm: A Strategic Review of CNOOC's Unocal Acquisition

• 作 者: Chang Philip C Wang Zhen
• 机 构: University of Calgary, Canada;China University of Petroleum, Beijing 102249, China
• 出 处: 石油科学（英文版）
• 发表日期: 2006年4期
• 关键词: Strategy political risk CNOOC Unocal Chevron

CNOOC’s 2005 attempt to take over Unocal was dubbed by some Chinese media as Acquisition of the Century, as the $18.5 billion bid was the largest-ever overseas acquisition by a Chinese company. CNOOC eventually withdrew its offer after Chevron joined the bidding war and political sentiment in the U.S. Congress became hostile. This paper analyzes the competitive bidding process and provides a strategic review. CNOOC’s advantages in the acquisition included its intational expertise, financing capability, access to the growing Chinese market, and its willingness to retain Unocal staff after the merger. The main challenges were corporate govance, especially the understanding of the role of the board and the management of political risk in the U.S. In hindsight a pledge to divest Unocal’s U.S. assets and not to give any impression of using subsidized loans could have helped deflect some political criticisms. Eventually, the U.S. govment published the required energy security study in 2006 and it provided no support to the political concs of the Congress.