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The Canadian stock market closed higher on Tuesday, lifted by energy stocks which were supported by higher oil prices and a gain in Nexen shares after U.S. regulators approved its takeover by China National Offshore Oil Corporation (CNOOC).

The S&P/TSX Composite Index gained 40.87 points, or 0.32 percent, to 12,789.02, while the S&P/TSX Venture Composite Index increased 2.74 points, or 0.23 percent, to 1,198.94.

It was accounced Tuesday that the U.S. Foreign Investment Committee has given final approval to the acquisition of Calgary-based Nexen by CNOOC, which cleared the last hurdle for the deal to be completed before Feb. 25.

Shares of Nexen ended up 2.04 percent to 27.48 Canadian dollars apiece on the Toronto Stock Exchange.

Elsewhere on the energy sector, the heavyweight Canadian Natural Resources increased 3.41 percent to 31.55 Canadian dollars per share amid rising oil prices. Suncor Energy rose 0.83 percent to 32.62 Canadian dollars per share.

Industrial stocks also provided lift to the Canadian market as the second-largest Canadian air carrier WestJet climbed 2.5 percent to 21.78 Canadian dollars per share. The company announced it was boosting its base in Western Canada by launching a new regional service in June in British Columbia's energy-producing region using the airline's first Bombardier turboprops.

Bombardier was unchanged at 4.09 Canadian dollars per share as the Washington-based General Aviation Manufacturers Association said the Canadian transport giant retained its position as the world's largest business jet manufacturer in 2012. The Montreal-based company kept the title despite an 11 percent drop in the value of its global deliveries in the fourth quarter of last year.

The metals and mining sector was up 0.5 percent when March copper in New York moved up 0.65 percent to 3.74 U.S. dollars a pound. Diversified miner Teck Resources advanced 2 percent to 33.99 Canadian dollars per share.

At closing, the Canadian dollar strengthened to 0.9980 U.S. dollar at 5 p.m. local time (2200 GMT), compared with 0.9957 U.S. dollar on Monday.