Malaysian state-run oil company Petronas has extended the deadline for its takeover bid for Canadian gas producer Progress Energy Resources Corp.(TSX:PRQ) in hopes it will be able to overcome Ottawa's objections to the $5.2 billion deal.
Petronas Canada says the deadline had been extended by 30 days to Nov. 30 and may be extended again.
However, the two companies said Monday they have met with Industry Canada and plan to submit a revised proposal in hopes of winning approval.
"As noted in the release by the minister, Petronas Canada has up to 30 days from the date of the announcement to make any additional representations and submit any further undertakings," the companies said in a joint statement.
Ottawa, reports the Vancouver Sun, wanted to approve the Petronas-Progress deal but worried it would tie the government's hands when reviewing the much more controversial $15.1-billion bid by China's CNOOC Ltd for Nexen Inc. (NYSE, TSX:NXY).
To date, the Canadian government has not publicly explained the decision to block the deal earlier this month, which drove down energy stocks and pressured the Canadian dollar. However, authorities say a new policy framework will soon be released, which will clarify the rules around foreign takeovers.