Canadian COMPETITION LAW

October 22, 2010

Marius Kloppers

“My reputation is not important here … ego does not come into this, and all that matters is whether this is value-creating for our shareholders”  See: The Australian.

Stephen Harper

“On the positive side, Prime Minister Stephen Harper referred to the deal as the takeover of a U.S.-controlled company by an Australian one.”   See: The Australian.

Tony Clement

“I have not made a determination.”  See: Winnipeg Free Press.

“I am neither a headwaiter to the premier of Saskatchewan, nor am I butler to the president of BHP.”  See: Winnipeg Free Press.

“He’s ‘working hard’ to meet the Nov. 3 deadline for the Investment Canada Act review.”   See: Bloomberg.

Brad Wall

“In the interests of jobs for Saskatchewan families, in the interest of quality of life that we prize that is funded by revenues to the government, we must say no to this hostile takeover … this is not a normal market transaction or a normal takeover. There hasn’t been a takeover in the history of takeovers, that we’re aware of, that involves almost a third of the world’s supply of something as strategic as potash.”  See: BBC.

“In the past decade, promises about maintaining jobs, corporate headquarters and future investment have all been broken. … We simply cannot take that risk with this valuable resource.”  See: Financial Times.

“BHP Billiton’s public statements about Canpotex and about operating at full production create serious concern about the future of Canpotex” … “This in turn puts $6 billion worth of capital expansion and thousands of jobs at risk.”  See: DealBook / New York Times.

“In the interest of jobs for Saskatchewan families, in the interest of the quality of life that we prize that’s funded by revenue to government, in the interest of the place of our province and our country in the world, we must say no to this hostile takeover.”  See: Winnipeg Free Press.

BHP executives

It’s a “special deal” for a special situation.  See: Globe and Mail.

Media on the tax concessions

“BHP has proposed to essentially waive two of its biggest tax advantages stemming from the proposed acquisition. BHP has offered to give up the deduction it would get from development costs of a new potash mine, which could be used to reduce taxes on Potash Corp.’s future production. And, BHP has offered to only use about a third of the interest-cost deduction from acquisition debt that it could legitimately take under Canada’s thin-capitalization regime.  In both cases, BHP is giving up something that it would be legitimately entitled to under existing (and longstanding) tax rules.  The result is a package that BHP says will save Saskatchewan about $300-million a year in tax revenue that otherwise would be lost. Of course, BHP shareholders are the ones that would pay that price.”  See: Globe and Mail.

BHP Chairman, Jac Nasser

“Any acquisition or investment must create value for our shareholders. … If shareholder value is not demonstrated, we will not proceed with the proposed acquisition.”  See: The National Business Review.

Andrew Mackenzie, BHP’s chief of non-iron ore operations

“I’m engaging with the federal government to see how many of the commitments I’ve made thus far can be turned into binding undertakings, and I will take those undertakings and I will find ways of convincing the Saskatchewan government that those undertakings will be commitments written with real power and things that we will not disappoint on.”  See: Winnipeg Free Press.

Ralph Goodale, Deputy Liberal Leader

“There are going to be consequences if the prime minister effectively gives the premier a slap in the face.”  See: Winnipeg Free Press.

Jack Layton, NDP Leader

“Even he recognizes ideology takes a backseat to basic math. And the numbers here don’t add up for Canadians.”  See: Winnipeg Free Press.

For more regulatory law updates follow me on Twitter: @CanadaAttorney

Comments are closed.