American, T. Rowe win big in oil M&A deal

American Funds and T. Rowe Price Group Inc. are the big mutual fund winners in Chinese offshore oil producer CNOOC Ltd's acquisition of Nexen Inc. (NXT).
JUL 23, 2012
American Funds and T. Rowe Price Group Inc. are the big mutual fund winners in Chinese offshore oil producer CNOOC Ltd's acquisition of Nexen Inc. Ticker:(NXT). CNOOC Ticker:(CEO) on Monday morning announced plans to buy the Canadian oil producer for $27.50 a share, a 61% premium over the previous Friday's closing price of $17.06. Shares were up 53% in pre-market trading Monday. The deal is cause for celebration at American Funds and T. Rowe Price, the two largest shareholders of Nexen. The American Funds EuroPacific Growth Fund Ticker:(AEPGX) was the largest single shareholder, with more than 21,000,000 shares, or 3.98% of Nexen's total shares, as of June 30, according to Morningstar Inc. The American Funds Growth Fund of America Ticker:(AGTHX) held 6,435,000 shares, making it the fourth-biggest shareholder, although it missed out on even bigger gains by reducing its holding of Nexen by 48% from March 31 to June 30, according to Morningstar. While the American Funds EuroPacific Growth Fund may be the biggest shareholder, the T. Rowe Price Mid-Cap Value Fund Ticker:(TRMCX) likely will receive the biggest performance boost. It held almost 10,190,000 shares as of March 31, which made it the second-biggest single shareholder and accounted for 2.14% of its total assets, compared with 0.38% of total assets for EuroPacific Growth Fund. The T. Rowe Price Value Fund Ticker:(TRVLX) was the third-largest shareholder, with 6,682,000 shares.

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