We realize that a Web Design & Consulting firm has very little place commenting on the largest foreign takeover of a Canadian company (Potash Corporation of Saskatchewan), however we’d like to put in our two cents on how we feel it may impact the Saskatoon and Saskatchewan Business community.

In a recent report examining the numerous scenarios detailing the varied outcomes of the takeover of Potash Corp. of Saskatchewan Inc., the Conference Board of Canada has offered warning about the possible result of foreign ownership of our greatest asset.  “It seems fairly certain that even if Sinochem puts together a financing consortium the underlying motivation would be to secure access to a key commodity,” the report said.

Current prices of Potash on the global market is no secret.  If you’re a citizen of Saskatchewan, you’ve likely heard reports of the continued rise of the commodity’s price.  The price in potash prices over the past 5 years has been the result of a carefully controlled supply, coupled with increasing demand..  Any foreign ownership of the world’s largest potash company would likely result in soaring levels of production, a plummeting price, and billions in  revenue lost for Saskatchewan.  The Conference Board’s report estimated that the resulting supply shifts would cost Saskatchewan $5.7-billion in lost taxes and royalties over a 10 year period.