Abu Dhabi National Energy Co’s TAC$5 billion ($5.07 billion) purchase of PrimeWest Energy Trust has been cleared by Canadian regulators, Primewest said on Tuesday. The purchase of the Canadian energy trust by Abu Dhabi Energy, better known as Taqa, was approved by Investment Canada, the federal agency that regulates foreign investment, PrimeWest said in a statement.
Taqa said in September it would offer C$26.75 a unit for PrimeWest, its third Canadian purchase since May as the Gulf firm seeks to turn its Canadian unit into a major oil producer.
However, the offer attracted the attention of Canada’s Conservative government, which is looking to introduce new rules on foreign acquisitions of Canadian companies.
The government wants to add a provision to the rules that allow it to block purchases of Canadian companies and resources by state-controlled firms on national security grounds. Taqa is 75% owned by the government of cash-rich Abu Dhabi.
However in October Prime Minister Stephen Harper said Taqa’s acquisition would be judged on existing rules, essentially rubber-stamping the purchase.
PrimeWest’s unitholders will vote on the deal on Wednesday. (Reuters)
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