The federal government has assured Agricore United it neither favours nor opposes the hostile takeover bid launched against the company by rival grain handler Saskatchewan Wheat Pool.
Agriculture minister Chuck Strahl recently sent a letter to AU officials clarifying a controversial statement he made in mid-November.
Asked to comment on the takeover bid, Strahl appeared to endorse the pool’s proposal.
“It does offset somewhat the ability of big companies like Cargill and others to dominate the market, so this isn’t a bad thing,” he said.
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“To have a heavy-duty Canadian player in the market is, I think, a good thing in the long run.”
AU chief executive officer Brian Hayward said the company received a flurry of questions from employees, customers, shareholders and financial analysts, expressing concerns about the possible impact of Strahl’s comments. The company wrote to the minister asking him to explain his comments.
“We’ve now received a letter of clarification from the minister stating that the government has no position on the issue,” said Hayward.
“He said he thinks the marketplace is where this matter should be decided after an independent review by the federal competition bureau.”
Hayward said the matter is now closed as far as AU is concerned.
