Canadian Manufacturing

Petronas makes new proposal to Ottawa for Progress takeover

Malaysian firm says it has "made additional representations and submitted further undertakings"


CALGARY—The Malaysian state-owned oil company trying to buy Progress Energy Resources Corp. has made a new proposal to Ottawa in hopes of winning approval for the $6-billion deal under the Investment Canada Act.

Petronas says it has “made additional representations and submitted further undertakings” to the government.

Ottawa rejected an earlier proposal by Petronas to buy the Canadian energy company, but gave Petronas 30 days to make changes and try again.

The renewed attempt to win regulatory approval came as Petronas extended the deadline to complete its takeover of the Canadian energy company to Dec. 30.

The deal had faced a deadline of Nov. 30.

Under the agreement, Petronas may extended the deadline for another 30 days if regulatory approvals have been obtained.

The review of the new Petronas application comes as Ottawa continues its review of CNOOC’s $15.1-billion takeover offer for Nexen Inc.

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