By Katie Ryan
The Saskatchewan government is exploring all of their potash options.
On Thursday, Energy and Resources Minister Bill Boyd announced that The Conference Board of Canada will conduct an independent analysis of a proposed takeover of Potash Corp. of Saskatchewan. The analysis is expected to present the provincial government with options to regulate the sector should Potash Corp. of Saskatchewan be acquired by a foreign company.
“The BHP offer was something that no one knew about until they made it public, but bringing in a group like the Conference Board of Canada after they made their public announcement and public bid is something we thought very early on would be a prudent thing to do,” said local MLA Tim McMillan. “A deal of this size doesn’t happen every day in Canada and especially in Saskatchewan, so I think it’s going to be a valuable part of our decision making.”
The Conference Board will provide a report identifying risks and opportunities this development presents. It is also expected to include an assessment of what governments can do to lower risk and increase opportunities.
McMillan said it’s too early to speculate what risks or opportunities might be included in the report.
“I wouldn’t want to pre-judge the work that we’ve asked them to do,” he said. “I think anybody can make some speculations and there is a lot going on out there about what this or that company does, but the Conference Board of Canada is probably one of the most reputable think-tanks and the most well-positioned to give us some advice on that.”
PotashCorp revealed on Aug. 17 that BHP Billiton presented the company with a $38.6 billion US cash offer to acquire the company. While PotashCorp’s board of directors rejected the deal, BHP Billiton has approached PotashCorp shareholders with the proposal and they have until Oct. 19 to make a decision.
The report will be completed and made public by Sept. 30, 2010 and will be used as the basis for Saskatchewan’s submissions to Industry Canada – the agency responsible for analyzing transactions under the Investment Canada Act.
“Part of this review is looking at this issue and (determining) at what stage do we get engaged and what mechanism is going to be best for us to ensure  the resource that the people of Saskatchewan own – that’s what we are looking out for. How do we most effectively ensure that it works for the people of Saskatchewan’s benefit?” said McMillan.
“When a deal like this is put forward there are decisions that are made and time-frames that we have to work within and utilizing this think tank will allow us to make the moves we feel appropriate.”
Reports have suggested other foreign companies – China’s Sinochem and Brazil’s Vale –  may be interested in also making an offer for PortashCorp.
“This is very serious for the people of Saskatchewan and I think what this report will do is identify where there may be challenges and opportunities and where best to engage ourselves to protect the interests of the people of Saskatchewan,” said McMillan.