Canada: Petronas Bid for Progress Energy on Hold

Canadian authorities are not satisfied with the $5.3 billion bid by Malaysian state energy firm Petronas to buy the Canadian gas producer Progress Energy Resources, AFP has reported.

"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," Industry Minister Christian Paradis said in a statement Friday, the news agency reported.

Petronas has inked a deal in June this year to purchase the Canadian firm. The move by the Malaysian energy giant was aimed at securing stable supplies of liquefied natural gas (LNG) from North America. Last year Petronas established a joint venture with Progress Energy to develop a portion of the Canadian company's shale assets and an integrated LNG export facility in western Canada.

Paradis said the Malaysian group had 30 days to "make any additional representations and submit any further undertakings" for him to take into account in his final decision on whether to approve the acquisition, AFP reported.