The Canadian Energy Minister Bill Boyd said yesterday that Potash Corp could be taken over by a Chinese sovereign fund or state-owned company, which he labelled a cause for concern.
According to Reuters, Potash Corp, situated in the Canadian province of Saskatchewan, is facing a US$38.6bn hostile takeover bid from BHP Billiton, meaning that top potash consumer China could become involved in a competing bid.
Saskatchewan relies on the royalties from potash for hundreds of millions of dollars in revenue each year.
Potash Corp previously rejected BHP’s offer of US$130 per share, calling it ‘grossly inadequate’.
ACQ Magazine