BHP CEO tries to soothe concerns over Potash bid

The Chief Executive of BHP Billiton was in Saskatchewan Monday, opening an office in downtown Saskatoon and attempting to soothe concerns over his company's $38.5-billion takeover bid for Potash Corp.

BHP Billiton CEO Marius Kloppers said he plans to meet with stakeholders during his stay in the province, as he opened BHP Billiton's new office in Saskatoon.

"I do want to personally present the credentials of the company. Of the 40-year history that we've had in Canada. And the way we do business," Kloppers said, adding the firm is prepared to spend "billions of dollars" to advance its Jansen potash project in Saskatchewan whatever the outcome of its bid for Potash Corp., the world's biggest fertilizer producer.

Premier Brad Wall met with Kloppers on Monday but said he'll have to make a recommendation to regulators and one of the questions he'll have to answer is whether Canada would see a net benefit from a takeover.

The premier seemed skeptical. "As of today... I don't know how we're better off if this takeover or any other subsequent change happens," said Wall.

Kloppers will have at least a month to convince the province that BHP Billiton's bid will benefit Saskatchewan and Canada.

Ifregulatory approval isreceived, the bid would still have to be approved by shareholders. Potash Corp has rejected the $130-per-share offer made in August. It said it's "wholly inadequate and is not in the best interests of the company." But Potash Corp is viewed as a prize acquisition,as the topproducer in the world with production of almost 11 million tonnes of potash in 2009, followed by rival Canadian company Mosaic at nine million tonnes.

Its geographic location is also coveted. Most of its operations are in Saskatchewan, which is favoured for its flat and consistent reserves, making production of the commodity relatively low cost. Potash is used as a major agricultural component in about 150 countries, with the largest importers of the product being the heavily populated countries such as China, India and Brazil, according to the website of Potash One, another Saskatchewan company, with its head office in Vancouver.

Potash production is limited to only 12 countries around the world, with the bulk coming from Canada, the world's largest producer, followed by Russia and Belarus.