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BHP Billiton Bid for Potash Corp Comes Under Government Scrutiny

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.

Joel Scanlon

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Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

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