“Canada’s approval of two Asian takeovers worth $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. (NXY) and a C$5.2 billion ($5.2 billion) offer for Progress Energy Resources Corp. (PRQ) 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.”
“Canada is open for business but it’s not going to be a garage sale,” Robert Cooper, an analyst at Haywood Securities Inc., said by phone from Calgary. Cooper highlighted Painted Pony Petroleum Ltd. and Tourmaline Oil Corp. as takeover candidates in the gas sector. “If I was a betting man and that’s where you were in the markets, those names will catch a bid.”
The two takeovers tested Harper’s ability to balance the need to bolster economic relations with Asian economies without letting them gain too much influence over the world’s third- largest pool of proven oil reserves…”
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