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Petronas extends Progress Energy takeover bid

Malaysian oil giant has until Nov. 30 to sell Industry Canada on the $6 billion acquisition.


October 29, 2012
by The Canadian Press

CALGARY—Petronas Canada has extended the deadline for its takeover bid for Progress Energy Resources Corp. in hopes it will be able to salvage the deal.

The federal government derailed the $6-billion takeover of the Calgary-based company earlier this month after it denied it approval under the Investment Canada Act.

Petronas says the deadline had been extended by 30 days to Nov. 30 and may be extended again.

However, Petronas says it has met with Industry Canada and plans to submit a revised proposal in hopes of winning approval.

The Petronas-Progress decision comes as Ottawa also weighs the more politically troublesome $15.1-billion takeover of Nexen Inc. by China National Offshore Oil Co.

A key issue with both deals is that the bidders are state-controlled companies, raising concerns about how much control of Canadian resources should be in the hands of foreign governments.

©The Canadian Press