Feds Deem BHP Bid as No Net Benefit to Canada
Canada's Industry Minister Tony Clement handed out his decision regarding the proposed deal that would allow Australian based BHP Billington..
Online, November 4, 2010 (Newswire.com) - TOP STORY -- ProspectingJournal.com -- November 3, 2010 - OTTAWA, ON - Canada's Industry Minister Tony Clement handed out his decision regarding the proposed deal that would allow Australian based BHP Billington [BHP - NYSE] to purchase Potash Corporation of Saskatchew [POT - NYSE]. After a lengthy bilingual reassurance to his base and to the world's market, Clement effectively blocked the deal on the grounds of not meeting a net benefit to Canada requirement.
"I've come to the conclusion that BHP BIllington's bid does not present a likely net benefit to Canada," said Clement, nearly an hour after markets closed. "This under the Investment Canada Act is an initial termination that becomes final in 30 days."
The move came after much lead-up coming in the discussion over whether the deal was good for business, Saskatchewan or the country as a whole. Clement could not comment on the aspects of the case that lead to his decision due to guidelines in the act, and the 30 day delay of finalization. To close out his announcement, the Industry Minister hinted at giving a more detailed look at the path to his decision at the earliest convenient time pending legal allowance to do so.
G. Joel Chury
Editor in Chief
ProspectingJournal.com