Canada blocks Petronas' $5.2 bn bid
The announcement late on Friday in Canada is a blow to the expansion plans of Petronas as its domestic oil supplies shrink and it seeks to boost its resources beyond Malaysia and volatile areas such as Sudan.
Its bid for Progress had not been expected to run into hurdles in a review process that asks the government to examine whether a deal is of net benefit to Canada. A rejection of both the CNOOC and Petronas bid could significantly damage the trade ties that Canada has been trying to build, especially with the Chinese.
Petronas, which said it was not ready to make any comment, has up to 30 days to make additional representations that could make its offer more palatable but it was not immediately clear what else it could put on the table.
I can confirm that I have sent a notice letter to Petronas indicating that I am not satisfied that the proposed investment is likely to be of net benefit to Canada, Christian Paradis, Canada's minister of industry, said in a late-night statement. Due to the strict confidentiality provisions of the (Investment Canada) Act, I cannot comment further on this investment at this time, he said.
Paradis, whose statement on the Petronas-Progress deal
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