https://www.theglobeandmail.com/
Kenneth Kaczkowski is a mergers-and-acquisitions (M&A) professional based in Munich, Germany. He has worked on global transactions in excess of $20-billion. Marc Levy has founded and sold several resource sector companies, with more than $950-million of public company exits; notably he sold Norsemont Mining to Hudbay Minerals Inc. for $520-million in 2011.
Commodity markets have been heating up over the past 12 months, prompting major mining companies to consider turning on their M&A engines. The market has seen some mega-deal announcements including BHP’s unsuccessful offer to take over Anglo-American, Newmont taking over Newcrest and Glencore acquiring Teck’s coal assets, which just gained approval from the Canadian government.
But the tail winds of the Glencore takeover of Teck’s coal assets have left a bitter taste in the market, owing to the Canadian government’s applying new rules limiting foreign takeovers of mining companies.
This is simply unwarranted government intervention, as their actions are not benefiting the market nor resulting in a net benefit to the economy. In fact, this act of governmental overreach is making it much more challenging for the Canadian market.
The Canadian government has a history of meddling in mining M&A. In 2010, prime minister Stephen Harper blocked BHP’s proposed takeover of Potash Corp. of Saskatchewan Inc.
For the rest of this article: https://www.theglobeandmail.com/business/commentary/article-canadian-government-intervention-is-harming-the-mining-sector/#:~:text=As%20the%20commodity%20market%20heats,or%20punishing%20investors%20and%20companies.