The Conference Board of Canada will analyze the possible takeover of the Potash Corporation of Saskatchewan.
The provincial government had said it wanted an independent opinion of a takeover after Australia’s BHP Billiton last month launched a hostile bid for the world’s largest potash producer.
Energy and resource minister Bill Boyd announced Sept. 2 the Conference Board would identify the risks and opportunities a takeover would present.
“No matter who owns the potash mines, the people of Saskatchewan own the potash,” he said.
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The analysis is due by the end of the month and will be used as the province’s submission to Industry Canada, which analyzes such transactions under the Investment Canada Act. It will be released publicly.
The terms of reference include an examination of potash industry employment, government revenues including royalties, corporate tax and indirect revenue, the province’s position in the international potash industry and its reputation as a positive place to invest.
The report will identify ways to mitigate risks and capitalize on opportunities.
The province’s largest coal landholder could also come under foreign ownership.
Saskatoon-based NuCoal Energy Corp., which owns more than four million acres mainly in southern Saskatchewan near Estevan, Wood Mountain and Shaunavon, and Coal- Based Investment Holdings Co. Ltd. of China last month signed a memorandum of understanding that would see CBI own 65 percent of a new company. NuCoal would retain 35 percent.
The purpose of the agreement is to build and operate a clean-coal poly-generation plant in Saskatchewan.
