The province last week officially rejected BHP Billiton’s hostile takeover bid for PotashCorp but that could mean little in the end.
Ottawa will make the ultimate decision.
Premier Brad Wall told a Saskatchewan Chamber of Commerce luncheon Oct. 21 that analysis has shown there is no net benefit to the province from the $38.6 billion takeover attempt of the world’s largest potash producer.
The province estimates it could lose $3 billion over the next 10 years because of the current royalty structure and tax deferrals.
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Wall suggested expansions planned by other companies could be at risk. BHP Billiton has said it wants to market its own potash and would withdraw from Canpotex, the international marketing body for Canadian potash.
Wall said Agrium and Mosaic have initiated $6 billion worth of expansions based on existing conditions. The jobs associated with those expansions could be lost.
The sale would also mean Canada loses an important strategic natural resource, he said.
“Canadian-led mining companies are at risk of becoming an endangered species,” he said. “This is the last and the biggest one.”
He urged the federal government to reject the deal.
The government, through the Investment Canada Act, can approve foreign takeovers only if there is a net benefit to Canada. BHP Billiton is based in Australia.
Federal industry minister Tony Clement said all things would be taken into consideration when the decision, expected Nov. 3, is made.
Some have criticized the Wall government’s position, saying it is at odds with the Saskatchewan Party’s free enterprise roots.
Steve McLellan, chief executive officer of the provincial chamber, said Saskatchewan’s reputation for being business friendly could take a hit.
Wall said free market governments have said no before.
