By Lauren Krugel, The Canadian Press October 20, 2012
CALGARY - The proposed $6 billion takeover of Canadian natural gas producer Progress by Malaysian state-owned energy giant Petronas has hit a potentially lethal snag.
After reviewing the deal, Federal Industry Minister Christian Paradis has given it the thumbs down.
"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," Paradis said in a statement issued late Friday night.
The minister did not explain his decision, saying only that it was made after "a careful and thorough review of the proposed transaction."
Under the terms of the Investment Canada Act, Petronas now has up to 30 days to make any changes to the proposed deal and send it back to Ottawa for another review.
"Canada has a long-standing reputation for welcoming foreign investment. The Government of Canada remains committed to maintaining an open climate for investment," Paradis said at the end of his statement.
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