Canada Blocks BHP’s PotashCorp Bid

Canadian Minister of Industry Tony Clement is scuttling the proposed $39 billion acquisition of PotashCorp by Australia’s BHP Billiton, noting that he is “not satisfied that the proposed transaction is likely to be a net benefit to Canada.” BHP has an opportunity to give Industry Canada additional information before the ministry’s final decision in 30 days. BHP says it is disappointed with the decision and that it will review its options while it continues to cooperate with the ministry. PotashCorp, which has been fighting the hostile takeover attempt, reiterated its view that BHP’s offer price is “wholly inadequate.”