Oil companies Royal Dutch Shell PLC (NYSE ADR: RDS.A) and PetroChina Co. Ltd. (NYSE ADR: PTR) yesterday (Monday) made a joint offer for Australian energy producer Arrow Energy Ltd. in yet another demonstration of how China is turning Australia into its personal commodities broker.
The $3.4 billion (A$3.26 billion) deal would give shareholders A$4.45 per share - a 28% premium from Friday's share price - and a share in a new Arrow international-business entity for each current Arrow share.
Market reaction was favorable as Arrow's prices soared 47% Monday following the news, up to A$5.11 on the Australian stock exchange (ASX).
"It's an opportunistic bid and good for Arrow shareholders," Tim Schroeders, Pengana Capital portfolio manager, told CNBC.
Tags: Acquisition, Australia, China, Coal, ConocoPhillips, Energy, Natural Gas, PetroChina, Royal Dutch Shell
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