Canada Blocks Petronas C$5.2 Billion Progress Energy Bid

Canada blocked Petroliam Nasional Bhd.’s C$5.2 billion ($5.23 billion) takeover of Progress Energy Resources Corp. (PRQ), in only the third rejection of a foreign acquisition in 27 years.

Petronas has 30 days to appeal or provide additional concessions, at which point the government will make a final decision, according to a statement by Industry Minister Christian Paradis.

“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,” Paradis said in a statement.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net