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Ottawa extends review of Progress Energy acquisition

Malaysia's Petronas has agreed to pay $6 billion for the Calgary-based energy developer.


October 5, 2012
by The Canadian Press

CALGARY—Ottawa is extending a review of the proposed takeover of Progress Energy Resources Corp. by Malaysia’s Petronas.

The Canadian company says the government and Petronas have agreed to extend the review under the Investment Canada Act to Oct. 19. The deal faces the key “net benefit” test under the act.

Petronas has agreed to pay $6 billion for Calgary-based Progress—its partner in BC shale natural gas development.

The review comes as Ottawa is also examining a Chinese company’s $15.1-billion offer for Calgary-based Nexen Inc.

Prime Minister Stephen Harper has said the Nexen deal “raises a range of difficult policy questions, difficult and forward-looking issues.”

The current review period for China National Offshore Oil Co.’s proposal to buy Nexen ends Oct. 12 but can be extended by up to a month.

©The Canadian Press