Petronas extends bid for Canada’s Progress amid regulatory uncertainty

20 November 2012 17:34  [Source: ICIS news]

TORONTO (ICIS)--Petronas on Tuesday extended its takeover bid for Canadian natural gas firm Progress Energy to 30 December amid ongoing uncertainty whether Canada’s government will approve the deal.

Malaysia's state-controlled energy and petrochemicals major Petronas also said that it submitted additional undertakings to the Canadian government to obtain approval. It did not disclose details.

The government of Prime Minister Stephen Harper has yet to decide on Petronas' bid from June for Progress, worth more than C$5bn, and a C$15bn bid from July by state-controlled China National Oil Offshore Corp (CNOOC) for Canadian oil and gas firm Nexen.

The government deferred its decisions on those deals several times.

In 2010, Canada blocked a bid by Anglo-Australian miner BHP for fertilizer major PotashCorp, saying that the deal would not be of net benefit to Canada under the relevant legislation - the Investment Canada Act. 

However, before that ruling, Canada had approved more than 1,600 takeovers since the legislation came into force in 1985. Only one deal, for a satellite technology company, had been rejected for national security reasons.

($1.00 = C$1.00)

By: Stefan Baumgarten
+1 713 525 2653

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