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Questions raised over benefits of Potash takeover
By Rob Gillies |
September 22, 2010, Wednesday
|
Print Edition
Print Edition
THE premier of Saskatchewan has questioned whether a foreign takeover of Canada's Potash of Saskatchewan is good for his province or Canada after meeting BHP Billiton's chief executive.
Premier Brad Wall's remarks on Monday came on the same day Canadian Prime Minister Stephen Harper told parliament that foreign takeovers are not automatically approved.
Australia's BHP Billiton Ltd launched a hostile US$130-per-share bid last month after Potash directors rejected its offer. Chinese state-owned companies are also interested in making a rival bid.
Harper's federal government can block a foreign takeover if it's not a "net benefit" to Canada. Harper has asked for Wall's input.
Wall is wary of both a Chinese and BHP takeover of Potash.
"The question needs to be, 'Are Saskatchewan people, are Canadians better off as a result of this, is our economy stronger as a result of this very large deal?'" Wall said.
Wall said his meeting with BHP Billiton CEO Marius Kloppers was friendly and frank, but he was no more supportive of the hostile takeover bid for Saskatchewan's biggest company than he was beforehand.
Saskatchewan's resource minister has said a state-owned Chinese buyer would want to drive down prices, which would hurt the province financially.
China has expressed unease that a BHP Billiton takeover of Potash might create a "potash monopoly" that would boost prices and hurt China, a major importer of the mineral used in fertilizer.
Premier Brad Wall's remarks on Monday came on the same day Canadian Prime Minister Stephen Harper told parliament that foreign takeovers are not automatically approved.
Australia's BHP Billiton Ltd launched a hostile US$130-per-share bid last month after Potash directors rejected its offer. Chinese state-owned companies are also interested in making a rival bid.
Harper's federal government can block a foreign takeover if it's not a "net benefit" to Canada. Harper has asked for Wall's input.
Wall is wary of both a Chinese and BHP takeover of Potash.
"The question needs to be, 'Are Saskatchewan people, are Canadians better off as a result of this, is our economy stronger as a result of this very large deal?'" Wall said.
Wall said his meeting with BHP Billiton CEO Marius Kloppers was friendly and frank, but he was no more supportive of the hostile takeover bid for Saskatchewan's biggest company than he was beforehand.
Saskatchewan's resource minister has said a state-owned Chinese buyer would want to drive down prices, which would hurt the province financially.
China has expressed unease that a BHP Billiton takeover of Potash might create a "potash monopoly" that would boost prices and hurt China, a major importer of the mineral used in fertilizer.
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