The Straits Times
Published on Dec 08, 2012

Canada approves Chinese, Malaysian takeover of energy producers


OTTAWA (REUTERS) - Canada gave the green light on Friday for state-owned Chinese and Malaysian firms to snap up two domestic energy companies, but said that in the future it would only approve investments in the oil sands by state-owned companies on an exceptional basis.

The US$15.1 billion (S$18.3 billion) purchase by China's CNOOC Ltd of Nexen Inc, will be the largest successful bid ever by a Chinese company if finally approved by U.S. regulators.

Caught up in the debate over CNOOC was the C$5.2 billion (S$6.4 billion) offer by Malaysia's Petronas for Progress Energy Resources Corp, which was initially turned down in October but will now be able to proceed.