Comments on: Blocking BHP’s Potash bid could damage Canada http://blogs.reuters.com/breakingviews/2010/11/02/blocking-bhps-potash-bid-could-damage-canada/ Wed, 22 May 2013 21:12:54 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: EisenKreuz http://blogs.reuters.com/breakingviews/2010/11/02/blocking-bhps-potash-bid-could-damage-canada/comment-page-1/#comment-4591 EisenKreuz Fri, 05 Nov 2010 00:50:53 +0000 http://blogs.reuters.com/columns/?p=4483#comment-4591 >>n BHP’s case, there is no impact on competition. While the Anglo-Australian miner plans to run the business differently if it takes control, its proposals are not that radical. Withdraw from Canpotex and cut prices? How is this not radical and harming competitors? And look what BHP did to customers when it broke the iron-ore pricing accords! As well, I am really confused why in a latter paragraph the author mentions the (possible) detrimental effects on share prices due the decision, but then in the last paragraph suggests raising mineral royalties as a solution. An increase in royalties would surely be a much harder hit to all mining share prices, than any perceived takeover-premium on a few large companies. >>n BHP’s case, there is no impact on competition. While the Anglo-Australian miner plans to run the business differently if it takes control, its proposals are not that radical.

Withdraw from Canpotex and cut prices? How is this not radical and harming competitors? And look what BHP did to customers when it broke the iron-ore pricing accords!

As well, I am really confused why in a latter paragraph the author mentions the (possible) detrimental effects on share prices due the decision, but then in the last paragraph suggests raising mineral royalties as a solution. An increase in royalties would surely be a much harder hit to all mining share prices, than any perceived takeover-premium on a few large companies.

]]> By: MaggiesFarmboy http://blogs.reuters.com/breakingviews/2010/11/02/blocking-bhps-potash-bid-could-damage-canada/comment-page-1/#comment-4507 MaggiesFarmboy Tue, 02 Nov 2010 19:36:16 +0000 http://blogs.reuters.com/columns/?p=4483#comment-4507 ...and $3 Billion is not chump change to a province of only 1 million people. …and $3 Billion is not chump change to a province of only 1 million people.

]]> By: MaggiesFarmboy http://blogs.reuters.com/breakingviews/2010/11/02/blocking-bhps-potash-bid-could-damage-canada/comment-page-1/#comment-4505 MaggiesFarmboy Tue, 02 Nov 2010 19:11:46 +0000 http://blogs.reuters.com/columns/?p=4483#comment-4505 "However, blocking the deal would have broader repercussions. The danger is that investors would view Canada’s mining sector as takeover proof, which would hit share prices and increase financing costs." What complete hogwash. Canada has approved over 1600 foreign takeovers, and refused only one (an aerospace company, for national security reasons). A refusal with respect to this unique company won't hurt the investment climate one bit, anymore than the anti-takeover measures that keep Alcoa in Pennsylvania hurt the USA. In fact even if the Canadian government rejects this deal, Canada will still be the most takeover friendly country in the world. “However, blocking the deal would have broader repercussions. The danger is that investors would view Canada’s mining sector as takeover proof, which would hit share prices and increase financing costs.”

What complete hogwash. Canada has approved over 1600 foreign takeovers, and refused only one (an aerospace company, for national security reasons). A refusal with respect to this unique company won’t hurt the investment climate one bit, anymore than the anti-takeover measures that keep Alcoa in Pennsylvania hurt the USA. In fact even if the Canadian government rejects this deal, Canada will still be the most takeover friendly country in the world.

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