OTTAWA - Ottawa has rejected a nearly US$40-billion takeover bid by BHP Billiton to buy Potash Corporation of Saskatchewan. Industry Minister Tony Clement made the decision after reviewing the deal to see if it would be of ''net benefit'' to Canada under the Investment Canada Act. His ruling says in effect that the takeover would not benefit Canada.
BHP has the right to make additional representations to Industry Canada within 30 days.
PotashCorp maintains its position that the US$130 per share offer undervalues the company. The board insists the offer is "not in the best interests of the company, its shareholders or other stakeholders."
[Editor's note: I would be surprised if BHP Billiton backed quietly away from its offer . Prepare for more news on this topic.]
Comments
Ted Taylor
It’s a relieve to see Canada protect Canadian resources for a change.
I’m concerned with the ongoing, aggressive foreign take over of Canadian natural resources.
Currently US debt payments to China result in Canada’s loss of natural resource based companies. China treats US dollars like hot potatoes and their buying up our resources at an exponential rate. The US can’t print the money fast enough to pay for their past ecconomic policy blunders.
When will Canada limit foreign ownership to 49%? This is a step other counties have taken to retain fair jurisdiction over their resoures.
We seem to be loosing our country without a war, not that I think war is good however many Canadians have given their lives to protect Canada.
It seems to me that proper legislation could quickly solve the problem and help keep Canada’s sovereignty intact.
Ted Taylor