Ottawa will not approve PotashCorp takeover

The federal government has stunned international investors, after saying 'No' to what would have been the biggest foreign takeover in Canadian history. Ottawa has rejected BHP Billiton's bid to buy out PotashCorp, the world's largest fertilizer producer.

CTV News: Danielle Hamamdjian on PotashCorp

Industry Minister Tony Clement says the government is not approving the nearly $40-billion hostile takeover of PotashCorp by Anglo-Australian buyer BHP Billiton at this time. The Australian company now has a month to reconsider its bid to take over.

CTV News Channel: Clement with his decision

Industry Minister Tony Clement announced to the public that he will not sell PotashCorp to BHP Billiton. Clement says he wants Canadians to know that he took their concerns into consideration, when making his decision.

CTV News Channel: Brad Wall responds

Saskatchewan Premiere Brad Wall responds to the government's decision to not sell PotashCorp to the BHP Billiton. Wall also expresses his gratitude towards everyone who made the difficult recommendation to the federal government.

CTV News Channel: Louis Gagnon, professor

A professor of finance at the Queen's School of Business says the PotashCorp takeover was almost like a showdown between politics and business. He also says the Minister's decision is reasonable - for BHP to improve their offer.

CTV News Channel: Michael Ignatieff responds

Liberal Leader Michael Ignatieff responds to the government's decision to not sell PotashCorp. Ignatieff says the government has been dragged kicking and screaming in a decision we hope is a clear no and the door should be shut firmly on this deal.

CTV News Channel: Jack Layton responds

NDP Leader Jack Layton believes there should be no room for BHP Billiton to sweeten their deal to buyout PotashCorp, the door should be closed.

CTV News Channel: Craig Oliver and Michael Hainsworth

CTV's Chief Political Correspondent Craig Oliver and BNN's Michael Hainsworth discuss whether the government's decision to not sell PotashCorp was a political or business decision.

Question period: Liberals grill Tories on takeover

The Liberal Party Leader urges the federal government to block the sale PotashCorp to an Anglo-Australian buyer but the PM is keeping their decision secret until later this afternoon.

CTV News Channel: Liberal leader on Potash bid

Liberal Leader Michael Ignatieff comments on the possible takeover by BHP Billiton and asks Prime Minster Stephen Harper not to allow the sale of PotashCorp to an Australian company. Ignatieff says it is not a protectionist move and the only possible answer is no.

CTV News Channel: Robert Fife on the Potash fight

CTV's Ottawa bureau chief says PotashCorp is a one of the world's most strategic companies and is an important resource for Canada. He says if the deal is made it may have a major financial impact on the Saskatchewan, which is why Brad Wall is against the deal.

Question period: Liberals hammer the Tories

The Liberals question the Tories about Australia's BHP Billiton's bid for Saskatchewan's Potash Corporation and the socio-economic affects it will have on Canadians and the valuable resources should the foreign takeover happen.

Question period: NDP trades barbs with the Tories

NDP Leader Jack Layton questions the Conservatives about the sale of Saskatchewan's Potash Corporation to Australia's BHP. He also says Prime Minister Stephen Harper needs to be clear on his decision and the future of Canadians.

CTV News Channel: BNN's Pamela Ritchie explains

A correspondent from the Business News Network discusses the Potash Corp. takeover bid. She says several newspaper articles are quoting insider sources that are alleging the deal is done with some concessions, which has Saskatchewan's Premier Brad Wall very frustrated with the federal government.

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Minister of Industry Tony Clement quickly leaves the podium without answering questions following a statement to reporters on Parliament Hill in Ottawa on Wednesday evening Nov. 3, 2010. (Sean Kilpatrick / THE CANADIAN PRESS)

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CTV.ca News Staff

Date: Wed. Nov. 3 2010 9:41 PM ET

Industry Minister Tony Clement says the government is not approving the nearly $40-billion hostile takeover of PotashCorp by Anglo-Australian buyer BHP Billiton at this time.

Clement said BHP Billiton must reconsider its position and his decision is the right one for Canada.

He added that the decision was his, and his alone.

"I can confirm that I have sent a notice to BHP Billiton indicating that, at this time, I am not satisfied that the proposed transaction is likely to be of net benefit to Canada," he said in a statement.

Clement said BHP Billiton has 30 days to change its proposal, and he will make a final decision at that time.

He added that he cannot legally discuss the specifics of the case during that period, and will not be qualifying the reasoning behind his decision.

BHP responded in a statement Wednesday evening.

"BHP Billiton is disappointed, but continues to believe that the Offer is of net benefit to Saskatchewan, New Brunswick and Canada. BHP Billiton will continue to cooperate with the Minister and the Investment Review Division of Industry Canada and will review its options," the company said.

Saskatchewan Premier Brad Wall had made it crystal clear that approving the hostile takeover would be seen as a betrayal of his province. He has argued the sale would cost Saskatchewan billions of dollars, and has even suggested he could challenge Ottawa's decision in court.

On Wednesday he thanked Clement for showing that the "net benefit test matters."

"This is not the same as other takeovers, this is different because of the nature of this resource," Wall said in a press conference. "We are a country that welcomes foreign investment, we are a free trading country, but we have been blessed by providence with a great amount of natural resources -- potash is one, but we could list all the others -- and so we may have to act differently in that regard."

PotashCorp is the world's largest producer of potash, a major component used in fertilizer. Saskatchewan is home to more than 50 per cent of the world's potash reserves, and accounts for about 30 per cent of global production.

Potash sales in Saskatchewan were $3.1 billion in 2009.

In a statement late Wednesday, PotashCorp said BHP's offer was "wholly inadequate."

"The PotashCorp board of directors strongly believes that the offer fails to reflect both the value of PotashCorp's premier position in a strategically vital industry and the company's future growth prospects," the company said.

"The PotashCorp board believes that the offer is not in the best interests of the company, its shareholders or other stakeholders."

BHP's offer worked out to about US$130 per share for the Canadian company. Share prices closed down six cents to C$146.21 in trading Wednesday on the Toronto Stock Exchange, well above the offer price.

‘Close the door:' Opposition

Both Liberal Leader Michael Ignatieff and NDP Leader Jack Layton called for the government to make its decision final, and close the 30-day window.

"(The Conservatives) have been dragged kicking and screaming towards what we hope is a clear ‘No' on this deal," Ignatieff told reporters. "Our position is the door should be closed firmly on this deal. Minister Clement is leaving the door a bit ajar here, perhaps hoping for another reaction from BHP Billiton."

Layton said the review process should not be so secretive.

"We welcome the fact that the minister has said he's not approving it at this stage, but he took considerable pains to invite this large Australian multi-national to bring forward an improved offer."

Clement championed his government's record on investment.

"Canada has a long-standing reputation for welcoming foreign investment. The government of Canada remains committed to maintaining an open climate for investment," he said.

Under the Investment Canada Act, the federal government must base its decisions on whether a takeover would bring a "net benefit" to Canadian communities.

There are reports that Russia has asked domestic fertilizer companies to consider making a bid for PotashCorp.

PotashCorp disclosed in a recent filing it has spoken to at least 15 different "financial and state-sponsored potential bidders or investors" regarding making a bid for the company.

Comments are now closed for this story

GVR
said

This is pretty easy if you ask me. This is an incredibly vauable resource. BHP wants it so bad they can taste it.Does that not tell you something? Potash belongs to Saskatchewan and Canada. It's value is limitless for our future. Keep it, grow it and expand Canada's prosperity. Do not sell out !

Scott ON
said

@Eddie. It was privatized in 1989. I suggest you look it up.

peter
said

It would be fine if they came up with all the cash and not burden the company with a huge debt. In these cases the debt will never allow Potash to ever show a profit again.

Dan
said

It's sad how uninformed Lefties like Constance are with their comments like "Steven harper Selling off Canada a piece at a time". As usual no research was done before making idiotic comments. Jut look into how many major Canadian companies were sold off to foreigners during the Chretien Martin reign and you'll change your tune.

ian
said

In the end the decision has to be a sound economic one and not based on political expediency. Unfortunately the opposition are using the people of saskatchewan as pawns in their game. When a company is sold off by the Crown, there is always the risk that one day it could become majority owned by foreign entities. That's the whole purpose of going public. How can we expect to compete in the global marketplace if our government gets involved in foreign takeovers based on emotion or political gamesmanship. Canadian companies will only be blocked out themselves if they do. The Liberals while governing with continuous majorities, didn't block any foreign takeovers during their reign because they always did what they wanted.

Jim in the West
said

I am no fan of Darth Sweater Vest, but I have thank him for this decision. I don't really care if it was motivated by the politics - protecting his SK seats, the good of the country - we really should have more control over our strategic resources, or we just won the coin toss. What matters is that the takeover was rejected.

Ian
said

I have a funny feeling that Intelligent Liberal is actually a Conservative trying to make Liberals look bad. How else can you explain the hairbrained comments that are posted by him/her. Yes PM Iggy will fix every single boo boo that Canada has. He first of all has to remember that it was his beloved heros Trudeau, Chretien and to a lesser degree, Martin who caused all the boo boos in the first place.

ohsolmio
said

Great decision! We need to keep Canada's rich resources. A foreign country doesn't care about the people of Saskatchewan and that offer didn't reflect the true value of the company. If we just sold to the highest bidder, a country like China could effectively buy the company, then proceed to increase production of potash drastically in order to flood the market and subsequently drive down the price so they can LOAD UP on fertilizer for themselves at a cheap price. They have 1.3 billion people to feed and they need cheap potash!! What benefit would that be to Saskatchewan? Royalties won't matter at that point.

Ian
said

Potash corp is already 51% owned by foreigners. One of the Head Offices is in Chicago for heaven's sake. Iggy and his supporters aka sheep are bleating about how evil Harper is to be selling off Canada's identity and resources. Just look up how many major Canadian Corporations were sold to foreigners during the Liberal years under Chretien and Martin and you'll be stunned! Remember how Hudson's Bay Company used to be Canadian and was a bigger part of the Canadian fabric than any other Canadian Company? Sold in early 2006 after a 17 month long battle. Did the Liberals under Paul Martin do anything at that time to stop this takeover? I guess not eh? Again and again we have to listen to that American Ignatieff telling us poor Canadian that only he and his party knows what's good for us and that if he were PM all would be good in the world. The Liberals ruled this country for long enough and left their mark. Let the other guys have a shot for awhile.

Ian
said

Here's a list of Major Canadian Corporations taken over by foreign companies during Liberal Party reign.MacMillan Bloedel 1999JDS Fitel (merged with Uniphase in US) 1999Eaton's (bought by Sears in 1999, closed in 2000)Seagram's 2000Corel 2003Petrokazakhstan (Calgary Oil company) 2005CP ships 2005Moslon (bought by Coors) 2005B.C. Gas 2005CP Hotels/Fairmont January 2006Dofasco January 2006Tim Horton's 1995Bauer, Cooper Hespeler 1995CCM 2004Hudson's Bay Company 2006 prior to Conservative election victory.It's funny though how I had to dig this up on the internet myself while the Candian media gave the Liberals another free pass with their hypocritical criticisms of the conservatives. The Liberals have virtually rubber stamped every foreign takeover of Canadian companies during their reign but want us to believe that they are the only party that cares about Canada!All this to say, SHUT UP IGGY

Prof. Pye Chartt
said

Can't help but laugh at the blazing nationalistic concern over the "control" of Canadian resources. (Never mind that PotashCorp was sold off by its creator, the Saskatchewan government, many years ago. Let's pretend otherwise.) When you're finished lecturing, political and economic hypocrites, and ideologically-challenged wizards, remember to close the barn door...as virtually all of the horses are gone. Thanks.

aj from montreal
said

This is what I don't get from the Federal Gov't; Why would Ottawa allow Quebec to authorize Bombardier to Partner itself with a French Industrial Firm (Alstom) upon building a $2.6 Billion, 200+ Train Cars to replace the current aging Metro train Cars in Montreal? Other Foreign Companies acquired the rights to make a bidding process and unfortunately, the bureaucrats from the Charest Liberals awarded the Contract to a Local/Quebec-French collaboration without any bidding process & with Extreme Bias as well.

Now, In the case of this PotashCorp takeover by an Australian Firm, BHP, why does the Harper Gov't took action by prejudice upon protecting Canadian Industry by blocking the takeover process?
- Isn't this also a direct violation of Int'l free trade and a way of not legitimizing Canada as an Economic Powerhouse? What's the point of all the G8 and G20 summits that happened this year when this kind of rubbish hits the news? How Corrupt!

No wonder why Provinical as well as Federal Politics in Canada are so scrutinized by all this incompetence!

Wake Up
said

The problem is that 90% of the posters here really don't have a clue about the intricacies of this proposal and how 'free' markets operate. You have no background in economics at all. The crux of this deal was not the purchase of the land that the resource sits on, it was the right to mine it and sell it. It's already primarily foreign owned for goodness sake. You must leave the door open to foreign investment. Most of you forget how many Canadian companies own organizations around the world. If we shut the door, then other countries will do the same. Protectionism doesn't serve anyone. Clement caved to an uneducated, uninformed electorate. The shareholders would have demanded more. And, Intelligent Liberal - your post has to be the most comical that you have ever written. What an oxymoron of a name.

Tim
said

After reading some of my 'conservative brethren' commentary on this issue, I realize this story has really demarcated the difference between conservatives who believe the free enterprise philosophy is best because it generally IS what is best for the country and those conservatives who are stubborn ideologues that think free market principles are ALWAYS the paramount determining factor. Uh no. National sovereignty and control over critical industries (like the MDA takeover attempt a few yrs. ago)is ALWAYS the trump card over ANY specific ideology. If free market principles allow loss of control of a important national resource or industry, those principles take a walk.

Marc
said

This is the correct decision. Marius and his stupid #2 haircut should leave Potash alone and slink back into his rathole.

Firinn
said

I ponder our future as a nation. Outsourced, manufactured out, international trade stagnation . The jobs?I predict Dollar stores are Canada's up and coming industry.Empires fall in two's!

J
said

Even though it was the best decision made by the Feds, it sounded like obvious that the decision was made for political reasons with the strong opposition to the deal including from Alberta and the 13 seats they have in SK were at stake even though the obvious decision without that factor was to reject anyways. If Alberta is against the deal not to mention the minority government, well that basically corners the CPC and forces them to quash the deal. Otherwise a majority CPC would have approved since it is their ideological preference.

JR from Pointe Claire
said

Word is that Clement chickened out. He was pushing for the sale along with potato Harper. If he was going against the sale - he would have already advised that action. He is an Ontario crook and should leave Federal politics. He does not care about Quebec or Saskatchewan! Get rid of the bums................you too Mckay!

d_abes in Saskatoon
said

To Eddie:epic fail. look it up.

OneforCanada
said

The issue is Canpotex, not PCS. We have the most effective cartell in the world (makes OPEC look bush league) that maximizes Canadian income. BHP would dismatel the Canpotex. We have other procted industries in Canada - are our banks for sale to foriegn interests? - but they all exist in Toronto. Finally we have a non-ontario interest protected!

Gordon
said

Interesting to read the comments. Has anyone looked at the corporate info on BHP? Largest mining company in the world, working on all the continents, in all fields of mining. In Canada, they operate one of the first diamond mines in Canada, contributing billions of dollars to the economy of Northern Canada (more than any Federal government, I bet), and many more dollars in direct community contributions and donations. They have committed to employing workers from the northern regions, flying them in to the worksite from the home community. Employees from across the rest of Canada fill the rest of the roles, contributing to the economy of those communities, and the airline industry!Leave the government out of the equation, and let the shareholders decide. This deal will benefit the WHOLE of Canada, not just the province of Saskatchewan...maybe THATS the problem...they don'y want to share!

Brenda
said

Wonderful news for our brothers and sisters in Saskatchewan! Watching a province pull together in economic tough times does my heart good. Keep up the good fight !

charlie
said

Wow - another example of a Government taking a principled stand, and at the same time confusing all the clucking birds on the fence who have nothing but nasty things to say. Never one to give any credit where it is rightfully due, Iggy now wants "transparency" in the foreign takeover review process - well, naturally, after decades of secrecy when the Liberals were doing it and approving these takeovers, NOW is the time for transparency - when it doesn't cost him anything. The mind boggles. Perhaps the Government actually paid heed to the impassioned (if politically expedient and motivated) advice from Mr. Ignatieff and Mr. Layton? Perhaps, but really - er, ok, right, sure they did, ROTFLMAO at that possibility!

Gypsy
said

Now if they could just repeal the takeover of INCO by Vale

Glenn Wishart
said

Australia already owns a huge chunk of the Forestry business in BC. Now they want to control Canadian Potash. Very little of the Oil Sands Industry is actually owned by Canadians > ( US, China, France, Norway, Holland etc. ). Maybe Canadians should just get up and walk away from this country and let the developed nations duke it out. STOP giving away our future!!!

SK Freedom Lover
said

Good call; it was that or further western alienation...

Danny Dinosaur
said

It is interesting to read the Con posts from earlier that refer to Iggy as pandering etc. because he thought the deal should be stopped. Now what? Can't say Harper is pandering or inconsistent or against fair and open business. Can we? Or can we all agree that he is guilty of total mismanagement of our tax dollars, our environment, our reputation and now our business structures. It is a totally incompetent group of people running the government who are capable of responding to head lines and nothing else.

Mike of the green rectangle
said

Screw formality, YEEEEEHAAAAAAAAAAA!!!!!!!!!!

Dan in Regina
said

Dear "al" : If you were considering setting up business in Saskatchewan that involves our natural resources, I cordially invite you to look elsewhere. SK is NOT a protectionist province as you seem to claim. If you want to do business outside the natural resources or any core drivers of this province, then come on in! It's poor of you to judge my province on this issue. Think about it.

kl
said

Wasnt the majority of canadians against this thing in the first place? Including the opposition? If this move doesnt demonstrate a government willing to compromise than I dont know what does. They listened to other parties and governments and then stated their position, works pretty good if you asked me. Im sure all the opposition will be outraged and contradict themselves once again. Just like when they DEMANDED a federal deficit for stimulus and then DEMAND the we get rid of it a year later. Oh and then are outraged that the government wants to end stimulus,.. on schedule. Blah Blah blah blah.

Gord
said

I think Minister Clement made the right decision. Canada is a natural resource economy and I think decisions in connection with the exploitation of these resources should be made in Canada for the benefit of Canadians. We should avoid the fate of third world countries whose natural resources are exploited by foreigners, with the crumbs left for the locals and the countries leaders look the other way while their Swiss bank accounts swell in payment for their co operation.
It would be nice to see a major Canadian pension plan take control.
I don't think this prohibition will hurt investment in Canada. Canada's is a safe haven and our sterling reputation and stability will continue to be available for foreign investment. The international investment community knows that.
Good call Minister Clement.

Ontario Resident and Roughrider Fan
said

Forget looking for the Prof's comments, read Intelligent Liberal then scan down to see what dough head takes it seriously. Not that is quality entertainment. Oh and to meet the comment criteria.......I think Clement is playing this one smart, by pushing the door, but not closing it. Let them come back with a better offer for Potash Corp. that is in Canada's best interest.

Arby
said

Ignatieff will say anything if it somehow denigrates the Conservative Party. If it was a good idea brought on by the Conservatives, the Liberals would be against it.If it was a bad idea brought on by the Conservatives, the Liberals would be against it.Right or wrong it appears Ignatieff is against anything and everything Conservative.Enough of what the Liberals think regarding the potash deal. They'll disagree with everything.It seems the potash deal is a very big issue for SK and a very political one to boot. Federal government should not jump in with both feet without more honest input and reasonable understanding as to what's at stake for SK.Sounds like they did consult.

AB
said

Good. There is always proprietary information and resources a company like this generates over time, and for all that to be sold to an outside country is a loss for Canada. A good example is when Dofasco was sold - all the developments in metallurgy made by Dofasco have been lost to another country. Sure there is still a factory here, but what about when the advanced steels they developed are in high demand? The money won't be flowing into Canada!

Prof. Pye Chartt
said

Bogus, unprincipled decision. Disappointed. The government of Saskatchewan didn't regard PotashCorp as a critical gem of profound Canadian importance -- and neither did Ottawa -- when it sold off all of its shares to the international investment community. Our Conservative government caved, just as Iggy pandered. Oh, well. It looks like everybody "wins." (That's why I'm a libertarian with ideological convictions that don't bend according to foul political winds.)

BRAVO !!!
said

Another great decision for Canada and Canadians by the only government in the last quarter century that really cares.

David, Mississauga
said

No surprise that they rejected it. They'll give all kinds of high-minded reasons, but the truth is that they don't want to commit political suicide.

donnie
said

what the hell is potash?

kevin burkhart
said

If BPH Ltd wanted to execute a successfull takeover they should start by offering a premium on the stock. There offer was for $130/share. Currently a shareholder can fetch $145/ share by selling their stock on the market. If I owned Potash Corp why in hell would I sell my stock for $130/share to BHP and lose 10% on every stock I own. How can you even call it a hotile takeover when the company is offering $10 BELOW!!! The current value of all outstanding stock!

Doug # BC
said

Relax "John from Saskatoon".Most of us are on the same side as you are.But I,for one,just think it's a bit hypocritcal for you to tell everyone not in SK,or holding shares,to mind our own business,and,at the same time,demand that the federal government fix the problem.If the feds are involved.ALL OF CANADA is involved. As to SK seeking responsible foreign investors, I think that is wise.I hope "Intellignt Liberal" has hs tongue in his cheek when he urges PM Ignatieff to ban foreign investment.Sometimes his posts are so ridiculous I fighre he is either a Conservative in drag,or just pulling our legs. Tony Clement has my sympathy on this.If he does block the sale,it comes with a huge risk>I don't expcect him to be knighted for it,but I would surely be appropriate for the people os SK to appreciate how far he is sticking his neck out,and what the consequences COULD (not will) be.I am sure Brad Wall kows.Even he remains silent on the downside impacts of not being seen as a friendly investment environment.On most other issues,he seems quite informed,and fairly conservative.

Eddie
said

To all of you who think PCS isn't Canadian owned...Get your facts straight. PCS is a CROWN CORPORATION, owned by the people of Saskatchewan. Look it up!

Rob
said

Sell the raw resource companies to foreign companies and then we buy the product back at twenty times the price . School of economics, nothing like selling Canada and Canadians out all at the same time. I really wonder how much of a kick back these guys get under the table of tax free money for approving such a deal. Nothing but white collar crime at its best. These guys should be hung for treason!

Chris
said

Thank you! Wise decision!!

nov 3 comment
said

Hey!harper did something right for once!Amazing!

Niagara George
said

Intelligent Liberal... I'm hoping that today's comment seals the deal and makes it obvious even to the most Unintelligent Conservative. You must be Harper's press secretary in 'disguise.' Halloween is over. It's time to move on, with a new name.I find it interesting that the potential sale of Potash Inc to an Australian company.is causing a ripple. People must feel attached to the resources in the ground. When the Ontario neoCons, under Mike Harris, sold our provincial electrical system to Direct Energy, a British company, there were few whispers of discontent. Rocks in the ground, must rate higher than the whole electrical infrastructure.

John from Saskatoon
said

if you're not from Saskatchewan or are not an investor in this company then your opinions on this matter should be kept to yourselves. This is our resource. Not anyone elses in Canada. If our stand drives away foreign investment from Saskatchewan then it wasn't the kind we wanted anyways. We want responsible foreign investment. Not the kind that will lie to us about their intentions and cost us money. Why would anyone want investment that would cost them money, free market or not. Don't be so stupid.

Sad Clown
said

Three things should always be majority-owned, managed, administered, and headquartered in their own jurisdiction: transportation, communication, and natural resources. Once you start losing these, you start losing sovereignty and rights over your own country, people, and resources. We are already seeing this as corporations take over and countries become less relevant. Citizens become employees and shareholders rule.

Tim
said

Intelligent Liberal said "Foreign investment in Canada should be blocked! This is another example how when he is elected Prime Minister Iggy will fix Canada's foreign policy."LOL...Way to go telling foreign investors that your money and the jobs that would be created are not welcome in Canada. With this illogic, I can see why the Liberals get votes and support. Nothing like scaring off foreign investors with blanket comments that don't make sense.

Prof. Pye Chartt
said

The government of Saskatchewan, which created PotashCorp in the first place, kissed the company good-bye years ago when it sold off its shares. Now, suddenly, the publicly-traded company is supposed to be "saved" by the federal government because it has profound national importance. Really? Yeah? Nope. Don't think so. Approve the sale, attach some meaningful conditions thereto, and move on. (Grow up Saskatchewan. You relinquished your commercial and economic entitlement long ago.) Messing with the "free" market, at this juncture, reflects poorly on Canada. However, politics often sees ideological principles being tossed out the window in a fit of populist pandering. (Speaking of "populist pandering," thanks for your two cents, Mr. Ignatieff. You surprised everyone, but all of us.)

Informed
said

Do some research... it is already mostly US owned.... which is foreign.... this is all smoke and mirrors by the media and Liberals, as per usual!

Bryn
said

The Province of Saskatchewan (I don't care which party, because Saskatchewan residents voted for them) sold off the Potash company years ago. Why are they now telling the federal government NOT to sell it to foreigners? If they're so bent on keeping it, why didn't they keep it themselves? Obviously, the answer was to get some cash at they time they could, but there's nothing in it for them to let it go this time, and they want the feds to block the sale. Saskatchewan, you sold off your company, but still retain the minerals themselves. You'll still be earning royalties on them. I'd suggest that you start taking control of your own resources and not selling them off in the first place, then getting the federal government to take the fall for your mistakes.

DJV
said

As a shareholder of POT, I will not be soliciting my stock to BHP or anyone else for that matter. Yes, I can make a nice short term gain but I prefer to look at the big picture. POT was once a $200 plus stock and with fertilizer prices on the rise as well as demand, I believe it will be there again.
Secondly, what country would allow a strategic resource to fall into the hands of one giant coporation. It's one thing to be open for business and investment, but it's quite another to be the nieve boy scout of the world, continually dropping your pants and bending over for the multinational corporations of the day.
Time for Min. Prentice to grow a couple and just say NO !

MikeInBC
said

For once I agree with Iggy. But is he just jumping on the bandwagon?

Bjorn
said

I'm thinking that the Liberal Leader is actually right for once in his life.

rob jones
said

None of you have a clue what you are talking about. Arm chair politicians.

BK
said

Get real people...Canada owns the land and it's mined by a foreign company already,,,so what's the difference...another foreign comapny..

Pratha v.
said

STOP selling Canada and its resources away. Quebec sold its water, Alberta and its oils and Alaska doesnt belong to Canada. We shouldn't let this continue and We shouldn't let a province decide whats good for the country. If a province wants to sell a part of Canada it has to get an agreement from all 10 province and all the parties.

John from Saskatoon
said

Why should the people of Saskatchewan have to foot the bill for what amounts to a name change on the door? BHP is has said they will go ahead with the Janzen mine regardless. If they can get ahold of PCS then they can quailify for huge tax breaks on the Janzen construction because they will then be a company that has existing assests and is expanding. They also have said they will pull out of Canpotex and maximize production to gain market share. What this does is allow BHP to sell potash cheaper to one of their own subsidiaries, which is where the royalties are charged then sell on the open market for a higher price. When this is done Saskatchewan loses revenue. Maximum production to gain market share puts the expansions from the other potash producers in jeopardy because of the loss of that market share therefore costing jobs. Now apparently an AUSTRAILIAN news paper has gotten ahold of internal BHP documents which says that once they gain control of PCS they will sell off portions of the company which they are publically saying they won't do. How can they be trusted? Just look at the troubles with recent foriegn takeovers where they companies haven't lived up to their obligations. How does this foreign investment benifit us? Remember this is a hostile takeover. It is not a solicited takeover or merger. Foreign investment is no good if it hurts us.

TerryR of Lethbridgge
said

I never thought I would agree with Iggy but on this one I do. The potash deal has to be stopped.So does the deal coming up with CETA, a deal with the EU.

Brad
said

If you think the US, Australia or any other country would let go of a natural resource like this you would be wrong. We can see in the past how foreign corporations have bought Canadian company's and then broken promises about keeping the work here and the government does nothing. Whats changed? Your a fool if you think this will benefit Canada.

Carl
said

The real-world facts of the matter have been lost in all the silly talk of "betrayal" and political manoeuvring. What are the economic implications of this issue? How will the proposed sale impact jobs, earnings and royalties? Maybe the sale would be very profitable for Canada and Saskatchewan. But we don't know because the media and politicians are not talking about that.

Bob,Calgary
said

When I invest my hard earned dollars in the stock market I expect that I can sell said equities either in the open market or to an external bidder whether foreign or not. The shareholders of Potash have a right to sell their shares to whomever,period. The potash in the ground is owned by the people of Saskatchewan, period. It's a no brainer. The government should allow the sale and the shareholders should either accept the price or hold out for another bid or a higher price from BHP. The bleating from Wahl (now a coverted socialist) and Stelmach (the worst premier Alberta has ever seen), Charest (a corrupt Premier of a bankrupt province), Iggy (simply trolling for 14 seats in Saskatchewan) and Layton (who doesn't know a balance sheet from a Starbucks latte) is irrelevant.

Constance
said

Stephen Harper = Selling off Canada, one industry at a time.

Mike
said

There's Iggy whining and trying to play politics, Damn it man cant you come up with any policies of your own. Seems odd that the governemt would have to get involved at this point. The bid is a buck 30 and the share price is a buck 45. Me thinks the shareholders will vote this down themselves

Linda in Vancouver
said

Michael has perfectly described the dilema that every thinking person is feeling about this.The people who think Canada should never selll resources are living in Fantasyland.Resource sales pay for your high standard of living.If you like poverty,don't sell anything. Canada has resources people need.But we lack both the population,and the investment capital to develope and use them oursleves.So,we ask investors to put up the money to develope the resource,and we make money through things like royalties and the jobs created. IF the sale is blocked,the decision may be fairly popular.But,international investors may no longer be looking at Canada as a safe place to invest money.Once that happens,we are all in deep Do-do.Especially given that manufacturing in Canada is almost a dead industry too.Who will pay for your free health care them? The tooth fairy? If the company can't be sold.the shares are essentially worthless,and Saskatchewan will almost certain not see people willing to invest there again. Here's an idea.Saskatchewan sold it.They want it back.BUY IT.Or is it their plan to return to total socialism. And,oh yea.This is PM Harpers fault. Spin me another fantasy Mr.Wall.He will certainly take the fall no matter what decision is made.But you, Mr.Wall,are a coward. Is there an election due in Sask,or do you lie every day??

Tom Hawley
said

We will know today if BHP Billiton's bid is accepted or not. With all the opposition against the bid in my opinion the decision will be based on politics . If Harper refuses the bid he may hold on to the thirteen vital Saskatchewan seats he now enjoys. If he accepts the bid those seats will most likely be up for grabs in the next election.So my guess is if he does not sell now he will hope to form a majority in the next election and then Potash Corp. will be sold.One should never have a fox guarding the chicken coup.

Intelligent Liberal
said

Foreign investment in Canada should be blocked! This is another example how when he is elected Prime Minister Iggy will fix Canada's foreign policy.

Doug # BC
said

C'mon "Mikie".Who do you thing you're kidding here/ In truth,you're loving the position that poor decisions in SK have put the Conservative government in.It's your pointy headed,elitist way of saying "we want to form government".Don't bother to mention that the Liberals rubber stamped almost every foreign buy out when they were in office.Not only that,they advocated in favour of the 64 cent dollar,which basically meant that not only did Liberla allow the sales, they allowed then at a 35% discount. What disapponits me the most is how SK is blamining the feds for this.SK owned that resource.Then,they willing slod ot because they couldn't make any money off of it.Somone bought it,made money on it,and now SK wants to renege on the deal by telling the people they sold it to,that they are not entitled to sell it to somone else. Brad Wall is the scumbag here.I actually hope ther is a LEGITMAT way for SK to come out of this happy.But Brad Wall is a hypocit for blaming the feds for this.The government of SK made the mess,and now,if it's can't be cleaned up by the feds,the province wants to take a pass on any real judgment about who caused this.The very least Brad could do is "man up",and tell everyone who started the problem.It's always easy to fogive someone,or a government,when they make an honest mistake.When they try to blame somone else,not so easy. As others have said.Tough choice.There is no answer that is entirely correct.On eill make people feel better by keeping the company the way it is.The other will cost honest shareholders millions of dollars,and show SK as a poor place to invest your money. This is akin to asking someone whether they want t be hung,or shot.

John Sheffrin
said

I'm a little confused, if someone would kindly explain how these things work. The shares are trading at $149 . The offer on the table would buy the shares at $130. How does this deal take place? Why would someone sell their shares to the BHP when they can sell them on the open market for more? Doesn�t an offer price have to be more than the trading price? Thanks.

Fred
said

How is it bad for Saskatchewan? They already gave the mineral rights away, so their only course of action is taxes and royalties and they already have those in place, so how does BHP ownership make it different than PCS? Neither are Canadian owned companies...

Saskatchewan DC
said

1. The government of Saskatchewan determined that the net benefit of disallowing the bid for Potash Corp. is greater than allowing the take-over, therefore2. The actions of the Saskatchewan government may violate principles of the free market, but the issue at hand is the federal government, which is of a lesser democratic value, is overruling the provincial government, therefore3. Constitutional changes with respect to global corporate take-overs should involve the provincial governments, as the democratic deficit of the federal government illegitimates there capacity to make decisions that overrule decisions made by a provincial government.And if any of you are at a loss with respect to this democratic deficit in the federal government, may I remind you that the only measure of accountability of the executive powers, the confidence of the Members of Parliament, was usurped by the action of proroguing Parliament which leads us to the government of this day. In addition, the reason for the allowance of proroguing Parliament was never explained by the Governor General � an affront to modern democratic principles of full disclosure which overrule the supposed convention of �non-disclosure� that is illegitimate in the eyes of a free people.

Fred
said

John. Retired PCS employee
said

For all you poeple who continue to say the Conservatives gave the Potash mines away are a long way off. I worked at a potash mine for 32 years before it was a crowncorp, during and after. While it was a crown, it was totally inefficient. One year just before a provincial election and Lanigan mine storage was full, the NDP gov. decided that it would be bad politics to lay off employees so they mined the ore and sent it directly to the tailings pile just to keep empoyees working! Would anyone who any semblance of a brain do this? If the Corp was still owned by the Crown, it would still be a little company expropriated from private enterprise and still be losing money because of stupid decisions.

nim from Edmonton
said

If we allow capitalism to reign freely, we could risk (at the extreme) another global financial crisis. There has to be some middle ground. I believe our Canadian government should concentrate on placing conditions on the BP offer that allows Sask. to maintain existing royalty revenues and keep jobs (ie keeping existing mines & require further R&D in Sask). The fact that BP is a foreign company is irrelevant as Potash is already primarily owned by foreign investors anyways. It shouldn�t be a matter of who owns it, rather do we have the measures in place to protect our �strategic resource�? After our government decided to sell Potash looked what happened? It is now so profitable and well run that someone wants to take it over � go figure�

Fred
said

What a joke, the province is basically saying NO to foreign investment, meanwhile PCS is an american company that happens to have the word 'Saskatchewan' in its name. BHP will contribute more in the end then PCS has, royalties and taxes are already in place so what is the problem?

Craven Moorehead
said

Way to cover your bases Iggy. Now if the Cons decide to decline the deal it will be because of your words of wisdom. And if they allow the deal to go through the west might actually acknowlege that you exist. Heck, mabey even get another seat! Or not. I would rather vote NDP than have a glorified American running our country.

Tom
said

Just to clarify something that is being ignored by the press, pundits and Iggy: The company does not OWN anything but its own assets. The actual resource is OWNED BY THE PROVINCE which licenses the company to mine it. That mining franchise can be revolked if if the company fails to pay their royalties to the province. Time to face reality and stop whining.

KJ in Kingston Ontario
said

I can't imagine any other developed country allowing this to happen in this day and age.

keven at potash
said

The only reason this is a hostile takeover is because Doyle wants more than $38.6 bil.PCS doesn't care any more for the province than Biliton.The feds shouldn't worry about blocking the sale but, should worry more about protecting the resource.I don't want to be like Alberta and tar sands where everybody can rape and pillage the resource and the people of the province have to sit and take it.

student from saskatoon
said

Personally, having the privilege of touring a potash mine recently, this bid is not in the best interests of Saskatchewan that will obviously have a significant effect on the rest of Canada. Having being born and raised here in Saskatchewan, I have come to realize that our way of life is one that has been built on the many jobs that PCS, and other companies provide to many residents for many years. We will lose control over our resources that make Canada rich to prosper efficiently and effectively...without it...people will lose faith in a government that should be looking for the best interests of our Canadian citizens. Brad Wall speaks in the best interest of the people of Saskatchewan on this issue. I hope I can say the same for PM Stephen Harper.

Michael
said

I'm of two minds on this...1) I don't want to see the our natural resource wealth sold off to foreigners but 2) I support free enterprise and object to the governments big nose in everybody's business which is detrimental to business and prosperity in general. Governments are never efficient in anything they do and should butt out. Mining is an important business and growing in demand for base and precious metals as older mines dry up. We need to be consistent in our approach if the govt is going to have a say in the affairs of business.

Jim in Ottawa
said

What this case demonstrates is that this country and its provinces require stronger laws protecting shareholder's rights--perhaps even having shareholder's rights and the right to private property enshouded in the Constitution. This is a private sale of a private company owned by private interests in which the offer by a third party is both fair and reasonable and whose acceptance should be at the discresion of the shareholders alone. The assets of the Potash Corp do not belong to the Government of Saskatchewan or the Government of Canada: the assets of the Potash Corp belong to the shareholders. Both the province and the federal government are dangerously meddling into the realm of expropriating private property, and this is just plain wrong on so many levels.

thetruth1028
said

Do the Right Thing, Protect our Economy: Block the Bid. End of story.

John from Saskatoon
said

This is not anywhere near a protectionist govt. You people who are for this sale are talking out of your a@#$. Potash is an extremely valuble resource and the business of mining and selling it can't be compared to normal buisnesses. If you're afraid to set up a buisness in this province because of the govts'
stance good riddance. We don't want your type here. You're the type of buisness owner that thinks you are owed the world and that it is your inalienable right to have everything given to you. Countries all over the world protect strategic resources because it is smart buisness.

Chuck
said

It's pretty obvious that the govt will approve the sale since Clements will be making the decision (ya right - of course Harper will have no influence on the decision - not his style to micromanage). Depending on the backlash, Clements may have to fall on his sword to save the cons.

Andrea
said

The Conservatives are in a bad situation now. If the bid goes through, they will loose seats in the next federal election, and if the don't allow it, well voters will still be angry. Either way, they will lose no matter what happens.

critisize
said

we owned the potahash mines once and a new tory goverment basically gave it away for a song now some of those same people from that last goverment dont want too sell it so the ndp had it right all along .since we have fifty percent of the worlds potash the province should own it and benifit. no other countrys give away there natural resoures. we should benifit not some corporate entity

WT
said

PCS was privatized by Grant Devine and the Conservatives in 1989. Now the same Conservatives want to partially close the door and stop further free enterprise with the company they no longer have any piece of, and is not Canadian owned anyway? They shouldn't have given away the resource in the first place, if they are so worried about keeping it now.

Ben
said

If we can sell Potash, which is basically selling control of a product essential in the production of food for an over populated world, why can't we sart selling our fresh water lakes as a resources too? We could all be rich like Saudi's then. I say start with Fish Lake in BC.

Proff Pie Fart
said

Love seeing the Cons in a corner. Approve and lose seats, don't approve and your base is angry. What to do, what to do.

al
said

If I was considering setting up business in Saskatchewan, I would now look elsewhere as it is too risky dealing with a protectionist province.Looks like Canada is only partially open for business.Whenever Quebec agrees with a western province you gotta know something is wrong

Will
said

If you are so damned worried about who owns the mining company and $$$$ then just make certain to have a royalty system in place (use Alberta's oil royalty system for example.) Otherwise, you shouldn't have privatized the company!

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