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BHP Billiton Bid for Potash Corp Comes Under Government Scrutiny

By Joel ScanlonOct 4 2010

BHP Billiton's hostile takeover bid for Potash Corporation of Saskatchewan has run into its first major hurdle. The $38.6 billion deal is the focus of a key report that the Canadian government is to receive this week.

The report by an independent think tank is based on the economic impact of the sale. It will analyse if the sale will benefit the province or not. The findings of this report will be binding on any judgement given by the federal government of Canada on allowing the takeover to proceed.

BHP Billiton and Potash Corp are already at logger heads over a court action initiated by Potash Corp against BHP Billiton accusing the largest miner in the world of providing false and misleading statements in order to bring down the company's share price value. Many experts saw this as a bid to hold off the BHP Billiton takeover bid till China could respond with its own bid.

Unfortunately Sinochem, the Chinese state backed chemical company has been unable to assemble a consortium which would be able to offer for Potash Corp and become its white knight. Analysts say that Beijing is unable to decide if the deal is important enough.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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