Canada Blocks BHP Bid

Farm Minister Gerry Ritz, in comments his office later said were just speculation, argued that letting BHP Billiton buy the fertilizer giant would have offered Australia’s farm sector too much of an advantage.

“Having someone different mine (potash) certainly does make a difference in that Australia is a major marketer of a lot of the same foodstuffs that Canada is. We’re a volume producer — so are they,” Ritz told Parliament.

“And for them to be able to go to the Indias and Chinas of the world and say ‘We now control your fertilizer too’ I think would have had a very detrimental effect. And I know the ministry of industry took all of that under advisement and it helped … formulate the decision.”

PotashCorp is the world’s biggest producer of its namesake chemical, an essential crop nutrient. Analysts said the company was now set to go it alone as a stand-alone company, just as it was before BHP launched its hostile bid in August.

“I’m happy it’s a stand-alone company. That’s what I want,” said Barry Schwartz of Baskin Financial, which owns about 35,000 PotashCorp shares. “At the end of the day, we will be able to control the price of potash and supply to China. Shareholders will be the real winners here.

Potash Corp stock fell just 2.4 percent on Thursday, the first trading day after the Canadian announcement. It closed at $141.97 a share, still above BHP’s offer price of $130-a-share, and analysts say fundamentals for the company are strong.

Desjardins Securities raised its PotashCorp to buy from hold, and set a price target of C$175.

Potash had dismissed the BHP offer as too low, and said it would find a white knight. It has sued BHP to stymie a takeover, a case that played out in a packed Chicago courtroom on Thursday.

BHP Still Bidding

BHP told the judge that its tender offer is still going forward. “We are now going to continue to work to see if we can persuade the Canadian government to approve this transaction,” a lawyer for the Anglo-Australian miner told the court.

But BHP also asked Saskatchewan’s securities watchdog to adjourn indefinitely a November 8-9 hearing on PotashCorp’s shareholder rights plan.

The hearing was to examine BHP’s application to strike down PotashCorp’s rights plan, a key defense in the fertilizer company’s attempts to fend-off its unsolicited suitor.

The decision whether to approve the offer had been a thorny one for Canada’s minority Conservative government, which needed to balance a desire to prove Canada’s investment friendly credentials with political realities, including massive opposition to a takeover from its Western Canadian heartland.

Fund managers and analysts said the fallout will affect just a few major companies, and Canada remains mostly “open for business”.

“It will discourage foreign companies taking a run at … large strategic assets, of which I think there’s only a handful,” said Gary Baker, leader of the research team covering Canadian equities at Connor, Clark & Lunn Investment Management in Vancouver.

“It would make it hard for someone to take over Suncor … but I think the government’s been fairly open,” he added, referring to Canada’s biggest energy company. “There’s been a lot of transactions, including the Chinese, coming into Canada buying smaller metals, oil and gas companies.”

(Source: Reuters)

Leave a Reply

Fertilizer Stories

FertilizerPhosphorus: Is Band Or Broadcast Application The Better Method?
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More
Granular urea from CF Industries urea plant in Donaldsonville, LA
FertilizerWhat’s In Store For Nitrogen In 2016
February 2, 2016
Supply is the overriding theme for the North American 2016 nitrogen outlook. In the last 12 months, global factors have Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More
Crop InputsABG: China Signs Off On Monsanto’s Roundup Ready …
February 3, 2016
Monsanto Co. on Wednesday announced it plans to launch its Roundup Ready 2 Xtend soybeans in time for the 2016 Read More
Syngenta headquarters in Basel, Switzerland
Crop Inputs6 Things To Know About The ChemChina-Syngenta Deal
February 3, 2016
After months of rumors and speculation, Syngenta has announced that ChemChina has offered to acquire the Swiss-based company. “In making Read More
FertilizerPhosphorus: Is Band Or Broadcast Application The Better…
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Syngenta Sign
Crop InputsChemChina Nearing Deal To Buy Syngenta For Record $43 B…
February 3, 2016
China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 Read More
Herbicides2015 ASA Trials Demonstrate Valent Fierce XLT Herbicide…
February 2, 2016
Valent U.S.A. today announced that new Fierce XLT Soybean Herbicide ranks in the top tier among growers for length of Read More
Crop Protection Products in storage
Paul SchrimpfCrop Input Selling: Return Of The Price List
February 2, 2016
It was a good 15 years ago, shortly after I first started writing for this esteemed publication, that it all Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Chesapeake Bay
StewardshipKeeping A Watch On Water Issues
February 2, 2016
During a down cycle in the market, it’s difficult to think about investing for the long term. For retail businesses, Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More