Conflicting reports over CITIC Kazakhstan US$2 billion oil firm purchase

HONG KONG, June 7 — Reuters reports China is close to scooping up yet another foreign oil company as its diversified overseas investment vehicle CITIC Group is poised to buy a private Kazakhstan oil producer for about US$2.2 billion.

“Most of the terms have been agreed,” says a Reuters source, adding that the plan to buy Canadian-listed Nations Energy, which owns Kazakhstan oil assets, had already won approval from China’s government.

Meanwhile Bloomberg reports CITIC is partnering with an Indian firm for its Kazakhstan buying spree: Bloomberg sources say CITIC will bid together with Oil & Natural Gas, India’s largest oil producer, for Kazakhstan oil assets owned by Calgary-based Nations Energy.

Separately, last week CITIC Group’s mainland commercial bank, China CITIC Bank (CNCB), announced it would raise about US$2 billion in an initial public offering (IPO) in Hong Kong.

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