CALGARY, Alberta Dec 12 Malaysia's Petronas
completed its C$5.2 billion ($5.3 billion) takeover of
Progress Energy Resources Corp on Wednesday, a deal
that was expected to have sailed through Canada's approval
process but got ensnared in a heated national debate about
foreign control of energy assets.
The government of Prime Minister Stephen Harper approved the
transaction on Friday, along with the $15.1 billion acquisition
of Nexen Inc by China's state-owned CNOOC Ltd
, following months of deliberation.
Industry Minister Christian Paradis initially rejected the
takeover of Progress, a mid-size natural gas producer, in
October, saying it would not have been a net benefit to Canada,
but invited the Malaysian state oil company to resubmit its
On Friday, the Harper government also issued new guidelines
for takeovers of Canadian energy businesses by foreign
state-owned enterprises, restricting future bids for control
over oil sands assets and suggesting the other energy deals will
also be difficult.
Petronas and Progress have announced plans to build a
liquefied natural gas export plant on Canada's West Coast that
could cost up to C$11 billion.
Progress's chief executive said last week that a completed
takeover could lead to a larger project because Petronas would
have access to all of Progress's gas reserves, not just the ones
that were part of the companies' previous joint venture.
Shares of Progress were up 1 Canadian cents at C$21.98 on
the Toronto Stock Exchange, a penny below Petronas's bid price.