Here’s the NYT’s Dealbook column on 11 October:
If you care at all about the future of the world’s food supply, you care — whether you know it or not — about Saskatchewan. A consortium of state-backed Chinese companies and financiers may make a takeover offer for Potash Corp. that rivals a $38.6 billion hostile bid from BHP Billiton, and that prospect has lawmakers in Washington, regulators in Canada and bankers on Wall Street all talking.
The politically charged subtext is this: Do we really want the Chinese to control the company that has the largest capacity to produce fertilizer? If that reminds you of 2005, when the China National Offshore Oil Company, or Cnooc, sought to buy Unocal, until an outcry from Congress stopped it, you would be right.
And the FT two days ago:
Canada has rejected BHP Billiton’s $39bn bid for PotashCorp, dealing a potentially fatal blow to the Australian miner’s 10-week pursuit of the Saskatchewan-based fertiliser producer.
Tony Clement, Canada’s industry minister, said: “At this time, I am not satisfied that the proposed transaction is likely to be of net benefit to Canada [as required by Ottawa’s foreign investment law].”
Mr Clement did not elaborate on the reasons for his decision, but said they would be given at the end of the 30 days. He added: “Canada has a long-standing reputation for welcoming foreign investment. The government of Canada remains committed to maintaining an open climate for investment.”
