Thursday, November 4, 2010
Where Politics Creates Restrainsts on Trade - Canadian Government Decides That Potash Bid Unacceptable Under “Net Benefit” Test
Posted by D. Daniel Sokol
When the industry ministry rather than the Competition Bureau decides on the merits of a proposed merger (BHP's bid for Potash), you might suspect that politics might trump competition. Welcome to Canada, which has blocked BHP's bid for Potash. I have noted in an article the potential for public restraints to be both pervasive and as damaging (if not more so) than private restraints on competition.