ANNOUNCEMENT 03 Nov 2010In November 2010, the government of Canada announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
See the hyperlinked material in the description.
The Canadian Ministry of Industry on November 3, 2010 informed the Australian mining company BHP Billiton that its proposed acquisition of PotashCorp, a Canadian fertilizer mining company, would not meet the criteria of Canada's investment screening mechanism. BHP Billiton was not deemed to meet the criteria of the net-benefit test under the Investment Canada Act.
BHP Billiton then announced on November 15, 2010 that it would withdraw its offer. In making this announcement, the company stressed both what it had already offered to do to meet the Canadian requirements and what was still at issue. Its offer had included an investment commitment of US$450 million on exploration and development over the next five years over and above commitments to spending on the Jansen project, an additional US$370 million on infrastructure funds, application for a listing on the Toronto Stock Exchange, a commitment to forego tax benefits, the relocation to Saskatchewan and Vancouver of over 200 additional jobs from outside Canada, at least US$8 million per annum on community programs, investing in the University of Saskatchewan to create a Mining Centre of Excellence, and a monitoring and compliance regime that included a US$250 million performance bond.
The company nonetheless stated that 'the company believes that the Minister of Industry would have required additional undertakings beyond those BHP Billiton had already offered which would have conflicted with BHP Billiton's business strategy and been counter to creating shareholder value.'