Shares of PrimeWest Energy Trust surged 32% to $26.25 Monday after the Canadian oil and gas producer agreed to be acquired by Abu Dhabi National Energy Co. for $4B, or $26.75 per trust unit, in cash. Including the assumption of debt, the deal is valued at about C$5B. It is the biggest-ever buyout of a North American entity by a United Arab Emirates company, and the largest purchase of a Canadian energy trust since the government said last October it would start taxing income funds in 2011. An economist at the Gulf Research Center in Dubai said he did not expect the deal to cause the type of furor seen last year by Dubai World's acquisition of six US port terminals through its purchase of London-based Peninsular & Oriental Steam Navigation Co. Canada's Industry Minister said the deal would be "reviewed, as others would, under the Investment Canada Act." Abu Dhabi, which also is known as TAQA, has been buying up Canadian assets, agreeing to a $540M purchase of Pioneer Natural Resources' Canadian assets in August and earlier this month completing the $2B purchase of Northrock Resources. It said it hopes to announce a follow-on transaction in Canada in 2008. TAQA has said it plans to spend as much as $60B worldwide by 2012; this deal would bring the amount to $21B thus far.
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