Canada nixes oil company takover

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CALGARY, Alberta, Oct. 21 (UPI) -- Progress Energy Resources' top executive Saturday defended the proposed takeover of the Canadian company by Malaysia's state-run oil company.

The Canadian government on Friday blocked Petronas' proposed multibillion-dollar takeover of the Calgary company, saying it wasn't in the country's best interests.

But Progress Energy's chief executive officer, Michael Culbert, said in a statement the firm will spend the next month determining "the nature of the issues and the potential remedies," the Canadian Broadcasting Corp. reported.

"The long-term health of the natural gas industry in Canada and the development of a new [liquefied natural gas] export industry are dependent on international investments," Culbert said.

Canadian Industry Minister Christian Paradis said purchase, valued at between $5 billion and $6 billion, failed Canada's "net benefit test."

"I can confirm that I have sent a notice letter to Petronas indicating that I am not satisfied that the proposed investment is likely to be of net benefit to Canada," Paradis said a statement.

The Canadian government also is taking a look at the buyout of Nexen Inc. of Calgary by China National Offshore Oil Corp., which would be a $15.1-billion deal.