CBC reports that, “The Saskatchewan government has decided it cannot support BHP Billiton’s proposed takeover of Potash Corporation, Premier Brad Wall says. ‘We must say no to this hostile takeover,’ Wall told a business audience in Regina on Thursday. …The Billiton proposal could be a ‘net loss’ for Saskatchewan and would not be in the country’s strategic interests, Wall said.”
“Wall argued the deal would give a foreign-controlled company access to a large percentage of the country’s potash supplies. …Wall also referred to a recent report from the Conference Board of Canada that said the deal could result in losses to the Saskatchewan treasury of $2 billion to $6 billion over the next decade.”
But, “Investment Canada will decide next month whether the takeover can proceed. The deal does not need Saskatchewan’s support, although observers say the province carries some weight in the discussion. …Asked about the bid in question period, (Prime Minister Stephen) Harper said, ‘This is the proposal for an American-controlled company to be taken over by an Australian-controlled company.'” (Wall has replied that 49 percent of Potash Corp.’s shares are held in Canada, 38 percent in the U.S., and 13 percent elsewhere.)
The Toronto Star adds that, “The federal government, which vets foreign acquisitions to see if they are of ‘net benefit’ to this country, has until Nov. 3 to approve the takeover. Blocking it would run against the Conservatives’ free-market creed but Wall’s staunch opposition is complicating the decision for Harper, who is also under pressure to block the deal from federal Liberals and New Democrats.”
The CBC report is at http://www.cbc.ca/canada/saskatchewan/story/2010/10/21/sk-potash-wall-1010.html, the Toronto Star report is at http://www.thestar.com/business/companies/article/878838–reject-potash-takeover-for-the-good-of-canada-wall-say?bn=1.
