Canada’s Progress Energy Resources said Sunday it was disappointed with Ottawa’s failure to approve Malaysian giant Petronas’ acquisition bid, adding it would attempt to find a possible solution.
“Progress will be working over the next 30 days to determine the nature of the issues and the potential remedies” said company president and CEO Michael Culbert, acknowledging the company’s disappointment in the decision.
“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 (the one by) Petronas.”
Industry Minister Christian Paradis said in a statement Friday that he had sent a letter to Petronas indicating he was “not satisfied that the proposed investment is likely to be of net benefit to Canada.”
The deal is thought to be worth an estimated US$5.5 billion.
Paradis said the Malaysian group had 30 days to “make any additional representations and submit any further undertakings” for him to take into account in his final decision on whether to approve the acquisition.
Citing confidentiality provisions in the law governing such investments, Paradis declined to give further details.
The two energy firms signed a deal in June for the purchase, saying it was aimed at securing stable supplies of liquefied natural gas (LNG) from North America. But the transaction still requires the government’s green light.
In Ottawa, Finance Minister Jim Flaherty touched on the issue in an interview with CTV.
It “has to do with two tests really: the net-benefit test — a. is the proposal in the net benefit of our country and b. are there any national security concerns,” said Flaherty.
Progress Energy to review Ottawa's concerns
