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Canada okays foreign energy takeovers

Source : BUSINESS_STANDARD
Last Updated: Sat, Dec 08, 2012 18:55 hrs

pCanada approved Chinas biggest ever foreign takeover on Friday a 151-billion bid by state-controlled CNOOC Ltd for energy company Nexen Inc but drew a line in the sand against future buys by state-owned enterprisesppIn a fierce defence of a tough new foreign investment framework Prime Minister Stephen Harper said Canada would not deliver control of the oil sands -- the worlds third-largest proven reserves of crude -- to a foreign governmentppThe ruling anxiously awaited by investors and politicians alike followed months of heated debate about how much of Canadas energy sector could and should be absorbed by companies run by other nationsppThe bid triggered unusually open dissent among legislators in the ruling right-of-centre Conservatives many of whom were particularly nervous about the idea of allowing China to gain control of the oil sandsppCanada said yes to this deal but will not do so next timepp"To be blunt Canadians have not spent years reducing the ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead" Harper told reporters after Ottawa gave the deal the green light along with approval for the less controversial takeover of gas company Progress Energy Resources Corp by another state-owned energy company Petronas of Malaysiap


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