This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Canada Blocks Petronas' Bid for Progress Energy Resources

TORONTO -- Canada has blocked the Malaysian state-owned oil firm Petronas' $5.2 billion (C$5.17 billion) bid for gas producer Progress Energy Resources (PRQ:Toronto), 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.

"Due to the strict confidentiality provisions of the (Investment Canada) Act, I cannot comment further on this investment at this time," said Paradis.

"Canada has a long-standing reputation for welcoming foreign investment. The Government of Canada remains committed to maintaining an open climate for investment," he added.

> > Bull or Bear? Vote in Our Poll

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 $15.2 billion (C$15.1 billion) that China National Offshore Oil Co. (CEO) is offering for oil producer Nexen Inc. (NXY)

Progress did not immediately respond to calls for comment.

Observers had been looking for signals from the review of the Petronas deal for an indication of how the government might proceed with the more controversial deal to buy Nexen.

Both deals involve Asian state-owned players, are worth billions of dollars and sprang from joint-venture partnerships with Canadian firms, but the Chinese bid has stoked a great deal more political furor than the Malaysian one.

"China comes with more baggage, as befits a great power," said Gordon Houlden, director of the University of Alberta's China Institute.

CNOOC and other big state-owned Chinese energy companies have increased purchases of oil and gas assets in the Americas as part of a global strategy to gain access to resources needed to fuel China's economy. The companies have moved more carefully since CNOOC tried seven years ago to buy the California energy firm Unocal Corp. only to withdraw its bid in the face of opposition from U.S. lawmakers who cited national security fears.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $112.11 -0.20%
FB $89.33 -0.62%
GOOG $614.36 0.00%
TSLA $249.80 0.85%
YHOO $32.50 2.30%

Markets

Chart of I:DJI
DOW 16,515.14 +163.76 1.00%
S&P 500 1,973.75 +24.89 1.28%
NASDAQ 4,796.08 +46.1010 0.97%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs