January 1, 2011
In March, state-owned CNOOC announced its investment in Bridas for $3.1 billion in cash.
Until Bridas unveiled in late November it would pay $7.06 billion for BPs 60% stake in Pan American Energy (PAE), the March transaction was the biggest M&A deal in Argentine oil & gas since 2000, according to Dealogic.
"It was a bold move by the Chinese," Jorge Barreda, partner at SinoLatin Capital, an M&A advisory firm that specializes in Asia-LatAm investments, tells LatinFinance.
Both the size of the deal and CNOOCs willingness to take a minority position in a country traditionally seen as high risk are indications of how far China will go to secure natural resources.
In a year of significantly increased Chinese buying of LatAm assets, CNOOC’s purchase of 50% of Bridas was one of the largest South-South deals.