OTTAWA, Oct. 22 (UPI) -- The Canadian government said Malaysia's state-owned energy company Petronas has one month to amend its proposal to take over a domestic counterpart.
Canadian Minister of Industry Christian Paradis said he sent a letter to Petronas stating he was "not satisfied" that a $6 billion takeover bid for Canada's Progress Energy was in the national interest.
"I came to this decision after a careful and thorough review of the proposed transaction," he said.
Paradis, early this month, said his ministry was 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.
Paradis said Petronas has 30 days as of Friday to amend its proposal, after which he would approve the acquisition or stand by his initial decision. He declined to elaborate on what led to his decision.
"Canada has a long-standing reputation for welcoming foreign investment," he said. "The government of Canada remains committed to maintaining an open climate for investment."
