Petronas, the Malaysian state-owned company, has offered $6-billion for buying the Canadian oil and gas firm, Progress Energy Resources Corp., in a deal which should be found in a “net benefit” to Canada for getting a successful approval. The statement of Ottawa asserted that it will not allow the deal as it is, which indicates that several changes may make the deal viable. So far, Ottawa has not blocked any oil and gas takeover before. In fact the Harper government is striving hard to prove to the foreign investors that Canada is fairly open to their investments.
Petronas has already once sweetened its bid before without any contending bid. In July the offer was $22 per share, increased from the initial $20.45. The deal has already been approved by the shareholders of both the companies.