Canada Approves CNOOC-Nexen, Petronas-Progress Takeover Deal

The Canadian government has approved the takeovers of Calgary-based Nexen Inc. and Progress Energy Resources Corp. by Asian state owned firms, the Canadian Press reported.

China's CNOOC and Malaysia's Petronas received the OK from the government late Friday as part of a wide-ranging update of foreign takeover rules. However, the government said it will only consider future takeover deals in the oilsands by state-owned companies in exceptional circumstances.

And all state-owned enterprises seeking to buy large Canadian companies will face greater scrutiny about how they operate and how much control their home governments would have over how they do business, the news report said.

Prime Minister Stephen Harper says foreign-state control of oilsands development has reached the point where further control would not be beneficial to Canada.

"When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments," Harper said.