CBC NewsSunday, November 14, 2010 | 5:00 PM CST
BHP Billiton has withdrawn its controversial $40-billion hostile-takeover bid of Potash Corporation of Saskatchewan, the Australian company said Sunday. The company's announcement comes about 10 days after the federal government ruled the acquisition would not provide a net benefit to the country. In a statement, company officials suggested the government's opinion was incorrect."BHP Billiton continues to believe its offer would have resulted in a significant net benefit to Canada . … As a package, the proposed undertakings offered by BHP Billiton … were unparalleled in substance, scope and duration, reflecting the importance of potash to Canada and Saskatchewan," the statement said."The company has offered to commit to legally binding undertakings that would have, among other things, increased employment, guaranteed investment and established the company's global potash headquarters in Saskatoon."Federal Industry Minister Tony Clement publicly declared the government's decision to quash the takeover on Nov. 3 but gave BHP Billiton 30 days to make additional representations so he could make a "final decision."The Investment Canada Act allows Ottawa to block any deal worth $299 million or more if the government finds it doesn't provide "net benefits" to Canadians.Sunday's development renders the need for a further decision from Clement moot.
No comments:
Post a Comment