There has been no shortage of opinions from lawmakers and members of the public about the proposed takeover of PotashCorp by BHP Billiton of Australia.
BHP has indicated it is not prepared to give up on its quest to bid for the company, even though PotashCorp's board of directors recommended against accepting the offer to its shareholders last week.
In the meantime, BHP has been mounting a media campaign in Saskatchewan, promising to locate its worldwide potash headquarters in Saskatoon and assuring that jobs would remain in the province.
With the fate of PotashCorp hanging in the balance, public officials at the federal and provincial level have waded in with their own opinions on what might happen and what the government's role would be.
Speaking at a Monday noon-hour Rotary luncheon in North Battleford on August 23, federal agriculture minister Gerry Ritz fielded a question from the floor about how the "net benefit to Canadians" clause of the Investment Canada Act would come into play in assessing the takeover of PotashCorp by BHP Billiton.
Ritz responded by emphasizing the federal government would not be getting involved in the PotashCorp takeover bid - for now.
"There is no role for the federal government to play until there is 'acceptance of'," said Ritz, " and then it starts to hit the competition boards and bureaus and into assessments as to the overall benefit of."
The types of "net benefits" that would be looked at, Ritz said, would include such things as jobs, royalties, and a number of other items to assess the benefit for Canadian taxpayers and consumers over time.
He added that each assessment in a takeover situation would be a little bit different depending on the purchases and agreements and so on. He also said some of the consumer protection laws had been strengthened as well.
Ritz voiced skepticism the BHP Billiton takeover bid would even be accepted by shareholders.
"I don't think this one will fly," said Ritz, saying the company's shares at this point were "very much under-valued."
Ritz said the major buyers of potash, China and India, were back in the market and so "we're seeing the shares of PotashCorp climbing back up from the low that they were." He said if any deal were to go forward "we are probably looking at closer to $50-60 billion dollars of asset value there." BHP Billiton's offer is for $38.6 billion.
Later, Ritz responded to another question about how much influence the PotashCorp CEO might have in affecting the outcome. Ritz said ultimately the decision on the sale would come down to the board of directors and shareholders.
Ritz noted that even if the BHP Billiton takeover doesn't go ahead it might drive PotashCorp to be more centred in Saskatchewan than it is now. That would be "a good thing", he said.
He was referring to the fact that seven of PotashCorp's top executives, including the CEO Bill Doyle, work out of the company's Chicago office.
"I don't think any potash gets trucked through Chicago," said Ritz.
The takeover bid continues to be watched closely at the provincial level. Two weeks ago the provincial government weighed in, saying that even if PotashCorp is taken over, legislation dictates that PotashCorp maintain its head office in the province of Saskatchewan.
Premier Brad Wall told reporters last week that the people of the province own the potash resource and that any federal approval should include conditions on the sale to protect the province's interests in the issue.
Last week provincial energy and resources minister Bill Boyd announced that the Conference Board of Canada would conduct an independent analysis of a proposed PotashCorp takeover.
The Conference Board is an independent not-for-profit research organization which would provide a report to identify the risks and opportunities this would present. The plan is for the report to be completed and made public by September 30, 2010 and would form the basis of Saskatchewan's submissions to Industry Canada, the agency responsible for analyzing transactions under the Investment Canada Act.
The provincial NDP have also waded in on the issue. Opposition leader Dwain Lingenfelter said in a news release that he was writing a letter to federal industry minister Tony Clement demanding a guarantee that Saskatchewan people be heard before the government approves any takeover of PotashCorp.
Speaking to the Regional Optimist on August 27, Lingenfelter said the wishes of the people of the province need to be considered with respect to the case.
"It's really important that we take the time before a sale is approved by the federal government to consult clearly with Saskatchewan people," said Lingenfelter.
"We are urging the federal government and the Wall government not to rush to sign off on the sale before the voices of Saskatchewan farmers and workers have been heard around this province."
Lingenfelter said the potash resource "belongs to the people of Saskatchewan' and expressed concern because Wall had worked for the previous Grant Devine government while PotashCorp was 小蓝视频 privatized. He said the Wall government needs to stand up to Ottawa more than they have done in the past on the issue of the potential takeover.
