By paNOW Staff

Ottawa rejects potash takeover bid

Nov 3, 2010 | 4:06 PM

The federal government has rejected the proposed $40-billion hosile takeover of Saskatchewan’s Potash Corp by Australian company BHP Billiton.

Just before 4 p.m. today, the Federal Minister Tony Clement announced the government had rejected the proposal.

“I have come to the conclusion that BHP’s Billiton bid does not present a likely net benefit to Canada,” said Clement.

“This, under the Investment Canada Act, is an initial termination that becomes final after 30 days. BHP Billiton must now consider their position.”

The reasons for the decision were not released.

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Opposition parties expressed their concern with the both the outcome and the way it was reached.

Liberal leader Michael Ignatieff said the process needed to be more open and the decision had to be more final.  

“The minister is perhaps hoping for another reaction from BHP Billiton. Our view is the door should be firmly shut on this deal,” said Ignatieff.

“We think the net benefit should be enforceable accountable and transparent. “

Under Canadian law, the BHP Billiton has 30 days to work with the government to come up with more favourable terms. If none can be reached, the rejection will be finalized.