Ottawa has rejected a proposed takeover of Potash Corp. of Saskatchewan by BHP Billiton Ltd., averting a showdown with Saskatchewan in what has become a fierce, politically charged battle for control of the Canadian resource jewel.
Industry Minister Tony Clement told reporters in Ottawa late Wednesday that he will not, at this point, approve the hostile bid worth almost $40-billion (U.S.). But BHP, the Australian mining giant, gets 30 days to change Ottawa's mind with additional commitments, as required by the Investment Canada Act.
"BHP's offer does not present a likely net benefit to Canada," Mr. Clement said at a news conference.
“BHP Billiton must now consider their position," he said. “I believe that my decision today is in the interest of Canada and of Canadians. And that is my bottom line.”
In rejecting the takeover, Stephen Harper's government averted a bruising political battle with a key provincial ally, Saskatchewan Premier Brad Wall, but may be undermining his own credentials as a champion of an open, market-based economy.
BHP said in a statement that it was disappointed by the decision but "continues to believe that the offer is of net benefit to Saskatchewan, New Brunswick and Canada."
The miner said it would review its options after the rejection and will co-operate with Mr. Clement and Industry Canada.
Mr. Clement did not shy away from the importance of his ruling.
"Some decisions can only be made once and there is no turning back, ever," he said.
Click here to see more...