Opposition Liberals `Troubled' by Report Canada May Approve BHP Potash Bid

Canada’s main opposition party said it’s “troubled” by a report the government may approve BHP Billiton Ltd.’s $40 billion hostile offer for Potash Corp. of Saskatchewan Inc.

Investment Canada, the agency reviewing the bid, has recommended that Prime Minister Stephen Harper’s government approve the takeover with conditions, The National Post reported today, citing unidentified people within the ruling Conservative Party.

The bureaucrats reviewing the offer proposed that a group be set up to monitor whether the Australian company follows through on promises made by BHP, the paper said. A decision on whether to approve or block the bid is expected by Nov. 3.

“This is a bad deal for Saskatchewan and a bad deal for Canada,” Liberal Party Deputy Leader Ralph Goodale, a member of Parliament from Saskatchewan, said in a statement today. “The Province has said no, and the Conservatives would ignore that advice at their peril.”

The Post article is “wrong” to say that Harper will make the final decision, Andrew MacDougall, a spokesman for Harper, wrote in an e-mail message. The decision is made by Industry Minister Tony Clement, he said, adding he didn’t know what recommendation Investment Canada may have made.

Erik Waddell, a spokesman for Clement, declined to comment on Investment Canada’s recommendation.

The Canadian government makes its decision based on whether it thinks the takeover provides a “net benefit” to the country.