UPDATE 3-Petronas, Progress extend closing date on proposed deal

Mon Oct 29, 2012 12:56pm EDT
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* Petronas-Progress extend closing by 30 days to Nov. 30

* Canadian govt had blocked proposed deal earlier in Oct

* Company says to make further submissions to win approval

* Progress shares rise 6.7 pct

By Niluksi Koswanage

KUALA LUMPUR, Oct 29 (Reuters) - Malaysian state oil company Petronas said on Monday it has extended the closing date on its bid for Canadian gas producer Progress Energy Resources until Nov. 30, as it works to overturn the Canadian government's rejection of the proposed deal.

Canada blocked Petronas' C$5.17 billion ($5.18 billion) bid for Progress this month after Industry Minister Christian Paradis said it was unlikely to bring a "net benefit" to the country. The government gave Petronas 30 days to make additional representations to alter the ruling.

Petronas said it intends to make further submissions to the ministry in order to obtain approval of the proposed deal. The company said it had met with Canadian officials to understand the basis for the rejection.

The transaction was earlier expected to close by Oct. 31. Under the terms of the deal, Petronas has the right to extend the outside date from Oct. 31 for up to 90 additional days, in 30-day increments, if the required regulatory approvals have not been obtained.   Continued...