23 Oct 2012

Petronas takeover bid blocked by Canada

6:57 am on 23 October 2012

Canada has blocked a $US5.2 billion takeover bid by Petronas of Malaysia for an oil and gas company, saying it would not benefit the country.

Petronas wanted to buy Progress Energy Resources, a Canadian company. The BBC reports Petronas now has 30 days to adjust its offer.

The decision also casts doubt over a $US15.1 billion bid for another company, Nexen, by CNOOC of China.

The offer from Petronas for Progress Energy Resources, which is worth C$5.18 billion, was agreed by the companies in June.

However, in a statement late on Friday Canadian Industry Minister Christian Paradis said the deal was not of "net benefit" to Canada.

The BBC reports a takeover would give Petronas access to shale gas reserves in the Montney region of British Columbia and Alberta.

Petronas would not comment on the decision when contacted by the BBC.