Saskatchewan Won't Support Sovereign Bids for Potash, Globe & Mail Says

The Saskatchewan government won’t support takeover attempts for Potash Corp. of Saskatchewan Inc. by sovereign wealth funds or state-owned companies from China or other customers, the Globe and Mail said, citing the province’s energy minister.

The interests of such bidders won’t be aligned to that of taxpayers in the province, Energy Minister Bill Boyd said, according to the newspaper.

A state-run foreign owner may increase production, drive down prices to ensure supplies for customers, which will mean lower revenues and possibly lost jobs for the province, the newspaper said. The provincial government can influence the nation’s decision to approve any takeovers, the paper said.

Sinochem Group, China’s largest fertilizer trader, last week said it is “closely watching” BHP Billiton Ltd.’s $40 billion bid for Potash Corp. The Chinese company made initial inquiries with Potash’s board last month about the possibility of holding talks, a person with knowledge of the matter said.

Potash Corp., the world’s biggest fertilizer producer, said on Aug. 23 it began talks with other companies on alternatives to BHP’s $130-a-share offer, which it said was inadequate.

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email