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Petronas, Progress bent on acquisition

Oct. 23, 2012 at 6:28 AM

CALGARY, Alberta, Oct. 23 (UPI) -- A Petronas subsidiary and Canada's Progress Energy Resources Corp. said they were determined to ensure the government a merger was in the country's interest.

Canadian Minister of Industry Christian Paradis said that, after a "thorough review," he wasn't satisfied that a $6 billion takeover bid by Malaysia's Petronas for Canada's Progress Energy was in the national interest.

Both companies, in a statement, said they'd meet with Canadian officials to get a better understanding of the decision.

"Petronas and Progress will work together to ensure that the minister has the necessary information to determine that the proposed acquisition of Progress would likely be of net benefit to Canada," the statement read.

Paradis said Petronas has 30 days as of Friday to alter its proposal, after which he would approve the acquisition or stand by his initial decision.

Early this month, the minister said was he undertaking a "rigorous review" of a $15 billion bid by China National Offshore Oil Corp. to take over Canadian energy company Nexen. Around 90 percent of the Nexen shareholders voted in favor of the deal.

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