New York: Canada needs foreign capital to develop its oil sands and is in the “middle” of discussions on how to approach foreign takeover bids such as the $15.1 billion (Dh55.5 billion) offer by China’s CNOOC for oil and gas producer Nexen, Finance Minister Jim Flaherty said on Friday.
Ottawa is deciding whether to allow or block two major transactions by state-owned players: the bid by China’s top offshore oil and gas producer for Nexen, and a $5.2 billion bid by Malaysia’s Petronas for Progress Energy Resources Corp.
The issue is hugely controversial in Canada, especially when natural resources are at stake. Prime Minister Stephen Harper has said he would unveil a new policy framework for dealing with foreign takeover bids around the same time as the government announces a decision on the two deals.
