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Saskatchewan Won't Back BHP's Potash Bid

Saskatchewan's government won't accept an offer of C$370 million of infrastructure investment from BHP Billiton in its effort to win support for its nearly $40 billion bid for Potash, according to reports.

SASKATOON, Saskatchewan, Canada (

TheStreet

) -- Saskatchewan's government won't accept an offer of 370 million Canadian dollars ($359.1 million) of infrastructure investment from

BHP Billiton

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(BHP) - Get Report

in its effort to win support for its nearly $40 billion bid for

Potash Corp.

(POT)

,

Bloomberg

reports.

The investment wouldn't offset the C$3 billion in revenue Saskatchewan will lose over 10 years should BHP acquire Potash, the world's largest fertilizer company, said an official from Saskatchewan in an email,

Bloomberg

reports.

Canada's federal government can block a foreign takeover if it's not a "net benefit" to Canada, the

Associated Press

notes. The federal government has asked for input from Saskatchewan, who sources say,

AP

reports, won't support the deal.

Canada's Conservative government is expected to listen to the government of Saskatchewan, which is also Conservative.

"This doesn't even come close to offsetting the province's revenue loss," the official said,

AP

reports. "The position of the government of Saskatchewan is unchanged. The potash resource doesn't belong to any company. It belongs to the people of Saskatchewan. We will protect the economic and strategic interests of the people of Saskatchewan."

-- Written by Joseph Woelfel

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Joseph Woelfel

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