US Government To Review China's Bid For Unocal

US Treasury Secretary John Snow said that the Bush administration is likely to review China National Offshore Oil Corporation's takeover bid for US oil producer Unocal on national security grounds.

In an interview in New York yesterday, Snow said it was too early to make any definitive comments on the issue, but added: "We will look at anything that raises national security issues.?

Whether the bid is approved by the US Government depends on the details of the purchase agreement and the situation of the companies involved, he said.

The Committee on Foreign Investments in the US, a body Snow chairs, is responsible for reviewing acquisitions of US companies by foreign corporations.

Chinese Foreign Ministry spokesman Liu Jianchao said on Tuesday that China opposed any political interference in CNOOC's bid to buy Unocal. CNOOC offered US$18.5 billion in cash last week to acquire California-based Unocal, a higher bid than the US$16.4 billion offer the company accepted from Chevron in April.