The Saskatchewan government is expected to announce tomorrow that it has rejected the proposed takeover of Potash Corp. of Saskatchewan by BHP Billiton.Premier Brad Wall told reporters today that analysis has not shown a net benefit to the province.The province could lose money over the first 10 years of new ownership because of tax deferrals.”At the very basis of a net benefit analysis we would need $3 billion (to remain even),” Wall said,.”As of today, I still do not see how this takeover is a net benefit to Saskatchewan or Canada.”He said the analysis breaks down revenue to the province, jobs and strategic interests.Jobs could be at risk if planned expansions at Agrium and Mosaic potash mines don’t go ahead, he added.The ultimate decision on whether to allow the takeover is up to Industry Canada. Although the province will likely urge the federal government to reject the bid, Ottawa is not bound by the provincial decision.In Ottawa, the federal Liberal party supported the province and said the government should reject the offer.Deputy Liberal leader and Saskatchewan MP Ralph Goodale said the benefits are unconvincing.The Saskatchewan cabinet is meeting today, and Wall will announce its decision at a Regina Chamber of Commerce luncheon tomorrow.Industry Canada is expected to make its decision by Nov. 3.
Sask. to oppose PotashCorp takeover
explore
Stories from our other publications
