Canada blocks Petronas bid for Progress Energy

Canada blocks Malaysian state oil firm Petronas' $5.2 billion bid for Progress Energy

Associated Press

TORONTO (AP) -- Canada has blocked the Malaysian state-owned oil firm Petronas' US$5.2 billion (CA$5.17 billion) bid for gas producer Progress Energy Resources, saying the proposed investment would not provide a net benefit to Canada.

Federal Industry Minister Christian Paradis did not explain his decision in a statement released just before midnight Friday, saying only that it was made after a careful and thorough review of the proposed transaction.

Petronas has up to 30 days to make any changes to the proposed deal and send it back to the federal government for another review under the terms of the Investment Canada Act.

Petronas' offer for Progress is substantial at $5.2 billion, but it's eclipsed by the US$15.2 billion (CA$15.1 billion) that China National Offshore Oil Co. is offering for oil producer Nexen.

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