Nexen, Progress Approvals Pave Way for Deals, Cap Oil Sands

Canada’s approval of two Asian takeovers valued at $20 billion may spark more foreign acquisitions of natural gas producers in the country while capping state-owned control of Alberta’s oil sands.

Canadian Prime Minister Stephen Harper approved China-owned Cnooc’s Ltd.’s $15.1 billion bid for Nexen Inc. and a C$5.2 billion ($5.27 billion) offer for Progress Energy Resources Corp. by Petroliam Nasional Bhd, Malaysia’s state-owned energy company, on Dec. 7. At the same time, Harper unveiled foreign investment guidelines to prevent future takeovers of oil-sands companies by state-owned companies, except under “exceptional circumstances.”