On November 3, 2010, Canada's Minister of Industry announced his conclusion that the proposed acquisition by BHP Billiton plc of Potash Corporation of Saskatchewan Inc. was not likely to be of "net benefit to Canada". Although provided a further 30 days to try to convince him to change his mind, BHP Billiton announced on November 14, 2010 that it would withdraw its bid. The Minister's announcement marked only the second time Canada has rejected a foreign takeover under the Investment Canada Act, the first being its rejection of the proposed acquisition by Alliant Techsystems Inc. of the information systems division of MacDonald, Dettwiler and Associates Ltd. in 2008.
The Minister said that he felt the takeover would not have a beneficial effect on three of the six criteria listed in the Act: Canada's ability to compete in world markets; productivity, efficiency and innovation in Canada; and the country's overall level of economic activity. The proposed takeover had also been vocally opposed by Saskatchewan Premier Brad Wall and generated an unprecedented degree of public commentary and controversy. Following his decision, the Minister said that he would support a review of the 25-year old statute to see how it could be improved in terms of transparency and enforceability. He also indicated that, in the meantime, he would clarify how he interprets the factors he is required to consider in coming to his conclusions on the "net benefit" test. Stikeman Elliott's Lawson Hunter, Susan Hutton and Michael Kilby represented PotashCorp with respect to the Competition Act and Investment Canada Act aspects of the transaction.
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