TORONTO (AP) — Malaysian state-owned oil firm Petronas and Canadian gas producer Progress Energy Resources said Monday they’ll meet with the federal government after the latter rejected Petronas’ $5.2 billion takeover bid last week. The decision has raised doubts about whether Canada is open to foreign investment by state-owned companies.
Industry Minister Christian Paradis did not explain the decision to block the Petronas-Progress deal in a statement released just before midnight Friday. The surprise announcement by Prime Minister Stephen Harper’s Conservative government has investors wondering if Chinese state-owned CNOOC’s $15.1 billion takeover of Canadian producer Nexen will be approved. That deal would be China’s biggest overseas energy acquisition.
