Canada: Minister Blocks Petronas Offer for Progress Energy

Christian Paradis, Canada’s Minister of Industry, has blocked Petronas’ USD 5.2 billion bid for Progress Energy Resources.

“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,” he said in a statement

“I came to this decision after a careful and thorough review of the proposed transaction. Under the Investment Canada Act, Petronas now has up to 30 days to make any additional representations and submit any further undertakings, which can be extended with my agreement and that of the investor. Subsequently, I will either confirm this initial decision or approve the acquisition,” he said.

In a response to the Minister’s statement Progress said that its Board of Directors, management and employees are disappointed in the announcement.

“Progress will be working over the next 30 days to determine the nature of the issues and the potential remedies,” said Michael Culbert, President and Chief Executive Officer of Progress.

“The long-term health of the natural gas industry in Canada and the development of a new LNG export industry are dependent on international investments such as PETRONAS’,” the company said.

[mappress]
LNG World News Staff, October 22, 2012; Image: Petronas