Abu Dhabi National to Buy PrimeWest

Written by  //  September 24, 2007  //  Business, Canada, Oil & gas, Politics  //  No comments

While we do not usually post business news, we believe the ramifications of this story are important. It seems obvious that the sale is part of the fallout from the decision of the Conservative government to go ahead with Bill C-52 without the amendments requested by the Canadian Association of Income Funds (CAIF).

Abu Dhabi National to Buy PrimeWest for C$4 Billion
By Sonja Franklin and Will McSheehy
Sept. 24 (Bloomberg) — Abu Dhabi National Energy Co., the state-controlled power generator and oil producer, agreed to buy Canada’s PrimeWest Energy Trust for about C$4 billion ($4 billion) in the biggest-ever North American takeover by a United Arab Emirates company.
Persian Gulf states, flush with cash from burgeoning oil revenue, are buying overseas assets at a record pace. Calgary- based PrimeWest would be Abu Dhabi National’s sixth overseas acquisition since November. The deal would give Abu Dhabi National, also known as Taqa, daily production of oil and gas equivalent to more than 61,000 barrels of oil in Canada and the U.S., the companies said in statement today.
“Taqa is very much fulfilling the Abu Dhabi government’s policy of diversifying its assets in other regions of the world,” said Philipp Lotter, senior analyst at Moody’s Investors Service in Dubai with an Aa2 investment-grade rating on the company’s debt. “This deal fits the profile of their recent acquisitions in Canada.”
A similar Canadian Press story emphasizes :
“In recent months, TAQA has been rapidly expanding its Canadian holdings. In May, it bid $2 billion for Calgary-based Northrock Resources Ltd., a division of U.S.-based Pogo Producing Co. In August TAQA struck a deal to acquire Pioneer Natural Resources Canada Inc., a unit of Pioneer Natural Resources Co. based in Dallas., for $540 million.
After merging with rival Shiningbank Energy Trust in July, PrimeWest became Canada’s seventh-largest energy trust. Like many other companies affected by last year’s federal government decision to tax income trusts, it has been exploring opportunities to revamp its corporate structure.”

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