As Glencore eyes Teck, Brad Wall sees echoes of 2010 battle for Potash Corp.

Amanda Stephenson, The Canadian Press

Former Saskatchewan premier Brad Wall says he doesn't know enough of the details to take a public stance on the merits of mining giant Glencore PLC's ongoing hostile takeover bid for Teck Resources Ltd. 

But the man who led his province's aggressive campaign to defend Potash Corp. of Saskatchewan against BHP Billiton in 2010 says there are clear similarities between that situation and what's going on now with the battle for Vancouver-based Teck.

He's also confident that in the case of Potash Corp., he and his government were in the right.

"Some things are worth fighting for. Some things are worth saying, 'No, this should be Canadian, this asset should remain Canadian,' " Wall said. 

"I think it's reasonable to offer up the Potash Corp. thing as a bit of a cautionary tale."

The future of Teck, Canada's largest diversified mining company, is currently unclear. The company's board has said it remains opposed to any deal with Glencore, but the Swiss commodities giant has threatened to take its takeover offer directly to shareholders if necessary.

The turmoil over Teck has ignited sentiments of economic nationalism, especially from those who say homegrown mining companies will be necessary if Canada is to capitalize on expected future growth in demand for critical minerals like copper and zinc.

Wall, who is now a special adviser for a Calgary-based law firm, knows exactly where those feelings are coming from. 

He felt very similar sentiments back in August 2010, when – while headed to the cinema with his wife Tami to watch the hit movie "Inception" – he got a call from then-Potash Corp. CEO Bill Doyle to tell him that Australian giant BHP was gunning for the Saskatoon-headquartered company.

"You kind of have to pay attention to that movie to follow it and enjoy it, and I clearly was not thinking of anything but the call I had just had," Wall recalled.

"Long afterwards "Inception" came out on video and we watched it again, and I said, 'I don't remember seeing any of this.' And that kind of tells you what you need to know. 

"The transaction was that important."

Potash Corp., a former Crown corporation that had turned into one of Canada's most valuable companies, was an economic powerhouse for Saskatchewan. As the world's largest producer of potash, the company in 2010 owned five of the nine operating potash mines in the province and employed thousands of people.

Wall quickly sought the advice of people including former Alberta premier Peter Lougheed and former Saskatchewan NDP premier Roy Romanow, who both encouraged him to fight for his province and its natural resources. He then put together a "war room" that launched a public relations blitz from coast-to-coast on the merits of keeping the company Canadian.

The team also gathered evidence from past takeovers, arguing that the promises foreign companies often make in these cases – such as commitments to Canadian jobs or head office locations – often don't become reality. 

Still, Wall did not know his government's campaign had been successful until November, when Conservative industry minister Tony Clement made the announcement in a media scrum that the federal government would block the proposed transaction, saying that BHP's offer did not translate to a "net benefit" for Canada. 

It was only the second time since the Investment Canada Act came into force in 1985 that a federal government had used the legislation to block a foreign takeover. 

"I was expecting that their answer would be 'Yes, with conditions.' In fact, I had written a speech for the press conference that day that anticipated that," Wall said. 

"I was not ready for them to say no. I ended up having to flip over the first page of the speech I had written and just hand-wrote some notes on the back."

In 2018, Potash Corp. merged with Calgary-based Agrium Inc. to become what is now Nutrien Ltd. The company remains in Canadian hands and is the world's largest fertilizer producer.

And BHP Billiton is building its own massive potash mine, expected to be operational in 2026, east of Saskatoon.

Wall considers it a win, and says the fact that his Saskatchewan Party government was a conservative, free-market-leaning government did not dissuade him from wading into the fray.

"Our view was that, in Saskatchewan it's particularly true, but even for Canada as a whole, we don't have a lot of global champions," he said. 

"And Potash Corp. was a global national fertilizer and potash champion and I think was, as I said, a very strategic asset for the country."

In the case of Glencore and Teck, B.C. Premier David Eby is opposed to a merger, while Opposition Leader Pierre Poilievre has called for the federal government to block any hostile takeover attempt.

Industry Minister François-Philippe Champagne has stopped short of a commitment but has spoken publicly about Teck's value as a Canadian company.

Barrick CEO says he has 'no intention' of pursuing Teck Deal

Doug Alexander, Bloomberg News

Barrick Gold Corp.’s top executive is closely watching the takeover battle for Teck Resources Ltd. but has no plans to pursue the Canadian base metals producer, which has drawn a US$23 billion offer from Glencore Plc.

“We’re certainly learning from it and watching how that progresses,” Barrick Chief Executive Officer Mark Bristow said Wednesday in a BNN Bloomberg TV interview. “Right now we have no intention to join that process.”

Bristow said a lot of people are interested in Teck, though Glencore’s proposal carries a lot of synergies — including coal and copper assets in Chile — that means the deal “makes sense.”

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Apr 27, 2023

Canadian Conservatives want proposed Glencore takeover of Teck blocked

Randy Thanthong-Knight, Bloomberg News

Canada’s main opposition party called for the government to block Glencore Plc’s proposed takeover of Teck Resources Ltd.

Thousands of jobs would be at risk if the Swiss commodities firm were to succeed in its unsolicited US$23 billion bid for the Vancouver-based miner, Conservative Leader Pierre Poilievre said in a statement Thursday. He warned it would also mark the loss of Canada’s last remaining major diversified base-metals miner owned and headquartered in the country.

“Canada needs a government that is committed to creating and supporting Canadian jobs,” Poilievre said. “Glencore’s attempted hostile takeover will ship thousands of jobs out-of-country and threaten thousands more Canadians who work for Teck.”

The opposition leader’s announcement ups the pressure on Prime Minister Justin Trudeau to take a stand on the issue. His finance and natural resources ministers have said in recent weeks that the government is watching the deal closely.

Teck is trying to fend off Glencore’s approach. But its plan to spin off its coal business suffered a major blow Wednesday when it withdrew the proposal for lack of support, hours before it was to be put to a shareholder vote.

Shares of Teck rose 1.3 per cent on Thursday to C$62.13 at 2:25 p.m. in Toronto, extending its gain this year to more than 22 per cent. Glencore closed the day down 1.7 per cent in London.

The deal is quickly becoming a broader political issue.

British Columbia Premier David Eby opposes it. And in a letter Monday to Vancouver’s board of trade, Deputy Prime Minister Chrystia Freeland said the nation needs companies like Teck in Canada as it prepares for the future of mining critical minerals key to the energy transition.

Any takeover of Teck would require the approval of the government. After a review, which could be lengthy, the final decision would mostly likely fall to Industry Minister Francois-Philippe Champagne, who signed Freeland’s letter alongside Natural Resources Minister Jonathan Wilkinson.

Canada blocked BHP Group’s proposed takeover of Potash Corp. of Saskatchewan in 2010, when Stephen Harper was prime minister. Poilievre was a member of that government.

SWEAT SHOP PROFITS

Gildan sees sales decline in first quarter, affirms full-year outlook

The Canadian Press

Gildan Activewear Inc. says it earned US$97.6 million in the first quarter of 2023, down 33.3 per cent from US$146.4 million a year earlier. Gildan president and CEO Glenn Chamandy poses for a photograph in Montreal, Thursday, February 5, 2015. , THE CANADIAN PRESS/Paul Chiasson

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Gildan Activewear Inc. says it earned US$97.6 million in the first quarter of 2023, down 33.3 per cent from US$146.4 million a year earlier. 

The Montreal-based company, which reports in U.S. dollars, says net sales for the quarter ended April 2 were US$702.9 million, down 9.3 per cent from US$774.9 million in the first quarter of 2022. 

Diluted earnings per share were 54 cents U.S., down 29.9 per cent from 77 cents a year earlier. 

Gildan president and CEO Glenn Chamandy said in a press release that the company met its sales expectations for the quarter.

He said the company remains comfortable with its full-year outlook despite an uncertain economic environment. 

Gildan says the decline in sales reflects anticipated demand headwinds as well as strong comparative periods in 2022. 

WHAT ABOUT CANADA?

NATO Warns That Russia Is Mapping EU, US Critical Assets

Natalia Drozdiak, Bloomberg News

(Bloomberg) -- NATO’s intelligence chief said that Russia is mapping critical undersea systems and warned of a significant risk that Moscow could target infrastructure in Europe and North America.

“There are heightened concerns that Russia may target undersea cables and other critical infrastructure in an effort to disrupt western life and gain leverage against those nations that are providing support to Ukraine,” David Cattler, the military alliance’s Assistant Secretary General for intelligence and security, told reporters. 

Members of the North Atlantic Treaty Organization have been racing to better safeguard undersea critical infrastructure after Nord Stream pipelines blasts last fall highlighted the difficulty of monitoring facilities and identifying attackers.

At issue is protecting systems like undersea cables, which account for 95% of internet communications and together carry an estimated $10 trillion worth of financial transactions every day, according to NATO.  

“Russia is actively mapping allied critical infrastructure both on land and on the seabed, this effort is supported by Russia’s military and civilian intelligence services,” Cattler said. He warned of “a persistent and significant risk” that Russia could attack allied systems.

Russia has blamed “Anglo-Saxon” allies for blowing up the Nord Stream gas pipelines, denying western accusations that it targeted its own links. But further incidents in recent months of what appear to be Russian spy ships operating near allied systems have heightened concern.

Admiral Henrique Gouveia e Melo, the head of the Portuguese Navy, told state-owned broadcaster RTP in March that a Russian vessel near the Portuguese island region of Madeira was a spy ship that was following and measuring submarine cables. 

Russian Patrols

A joint investigation published in April by Danish, Finnish, Swedish and Norwegian public broadcasters said that Russian military and civilian ships were mapping seabed infrastructure in the Baltic and North Seas.

Russia’s “patrols into the Atlantic and throughout the Atlantic are at a high level, most of the time at a higher level than what we’ve seen in recent years,” Cattler said. He added Russia appears to be targeting undersea infrastructure in the broad Atlantic, the Baltic Sea and the North Sea.  

Cattler pointed to Russia’s military strategy — which calls for rapid destruction of critical infrastructure in the early stages of a conflict, a tactic seen in Ukraine — as one reason for the heightened concern. 

Reconnaissance Program

Moscow’s efforts are led in part by an underwater reconnaissance program in the ministry of defense and are supported by military and civilian intelligence services, with considerable resources at their disposal across the digital, space, air, land and maritime domains, he said.

While China is also active in the domain, Cattler said, it is more interested in buying infrastructure than testing the vulnerabilities of others. He added that threats also exist from terrorists and other groups, particularly where the cables or infrastructure meet land.

NATO recently established an undersea infrastructure coordination cell, led by Lieutenant General Hans-Werner Wiermann, which aims to boost the security of allied systems by sharing best practices, information and wielding technologies to secure the links. 

With monitoring undersea infrastructure a particularly difficult challenge, Wiermann said NATO wants to add another layer of surveillance to its systems to identify suspicious behavior close to or above critical undersea cables, pipelines and connectors by analyzing signal data that could point to tampering.

U.S. history scores hit stunning lows among 8th graders

Illustration: Natalie Peeples/Axios

U.S. history scores among the nation's eighth graders plummeted in 2022, new assessment results known as the Nation's Report Card show.

The big picture: The history scores, which are the lowest ever recorded since the assessment began in 1994, plus civics scores seeing their first-ever decline underscore the pandemic's prolonged effects on students.

• History scores on the NAEP assessment have been trending down since 2014, but the pandemic had a "profound impact" on student learning, U.S. Education Secretary Miguel Cardona said in a statement.

Driving the news: The results from the National Assessment of Educational Progress (NAEP) released Wednesday show that about 40% of eighth graders scored below the basic level in U.S. history in 2022, compared to 34% in 2018.

• Just 13% of students performed at or above the "proficient" level in U.S. history.
• Eighth graders' average civic scores decreased by 2-points compared to 2018, the NAEP results show. They're comparable to results from 1998, which is the first assessment year for civics under the current framework.
• The civics assessment tests knowledge of aspects of American democracy and the U.S. political system and other topics related to citizenship, per NAEP.

Zoom out: The new results follow NAEP test scores released last fall revealing the largest math declines ever recorded for fourth- and eighth-graders.

• Math scores declined for those grades in nearly every state and district between 2019 and 2022. Reading scores also fell in most states during those years, according to the results.

What they're saying: "Far too many of our students are struggling to understand and explain the importance of civic participation, how American government functions, and the historical significance of events," Peggy Carr, commissioner of the National Center for Education Statistics, a branch of the Education Department, said in a press release.

• "These results are a national concern," she added.

Human rights experts alarmed over ‘imminent executions’ in Saudi Arabia

03 May 2023


On Wednesday, a large group of UN-appointed independent human rights experts expressed concern over the possibly imminent execution of three members of the Howeitat tribe in Saudi Arabia, urging authorities to stop the process.

“Despite being charged with terrorism, they were reportedly arrested for resisting forced evictions in the name of the NEOM project and the construction of a 170km linear city called The Line,” the UN experts said.

‘Smart city’ project

NEOM is a futuristic urban development project backed by the Saudi Public Investment Fund.

Shadly Ahmad Mahmoud Abou Taqiqa al-Huwaiti, Mr Ibrahim Salih Ahmad Abou Khalil al-Huwaiti and Mr Atallah Moussa Mohammed al-Huwaiti were sentenced to death on 5 August last year, and their sentences were backed by Saudi Arabia’s Specialised Criminal Court of Appeal, on 23 January.

Three other members of the Howeitat tribe were sentenced to “severe prison terms” said a press releaseOpens in new window issued on behalf of the experts: Abdelnasser Ahmad Mahmoud Abou Taqiqa al-Huwaiti received a 27 year sentence; Mahmoud Ahmad Mahmoud Abou Taqiqa al-Huwaiti, 35 years; and Abdullah Dakhilallah al-Huwaiti was sentenced to 50 years in jail.

“Under international law, States that have not yet abolished the death penalty may only impose it for the ‘most serious crimes’, involving intentional killing,” the experts said. “We do not believe the actions in question meet this threshold.”

Investigate allegations

The UN Human Rights CouncilOpens in new window-appointed experts urged the Saudi authorities to investigate allegations of torture and other mistreatment involving the men, promptly and impartially.

They also asked authorities to review the sentences imposed, and, if appropriate, to retry them according with the norms and standards of due process. “Any statement that is proven to have been made as a result of torture is inadmissible in any proceedings,” the human rights experts said.

‘Vague’ anti-terror law

“All six individuals have been charged under the overly vague 2017 Saudi law on combating crimes of terrorism and its financing,” the experts said, warning that this law does not appear to be in line with international law, as raised several times by Special ProceduresOpens in new window.

They expressed serious concern that some of the detainees had allegedly been subjected to torture and ill-treatment to extract confessions of guilt, and that due process safeguards had not been followed to ensure their right to a fair trial.

Tribal rights

The authorities have reportedly made several moves to evict members of the Howeitat tribe from their homes and traditional lands, in three villages, all related to the NOEM project development, since January 2020.

Despite promises that they would be involved in the process and receive fair compensation, many have allegedly been evicted and their homes demolished without suitable compensation, the experts said.

During the initial protests, one member of the tribe was reportedly killed in his own home by members of the Saudi Special Forces.

“Given the circumstances, we cannot consider that the requirements of consultation and free, prior and informed consent of the Howeitat people of the three villages have been met,” the experts said.

“On the contrary, these actions would certainly amount to forced evictions, which are prohibited under international law as a violation of the right to adequate housing. The actions also constitute flagrant violations of the rights to freedom of expression and access to information.”

Plea to foreign investors

“We urge all companies involved, including foreign investors, to ensure that they are not causing or contributing to, and are not directly linked to serious human rights abuses,” the human rights experts said.

The experts reminded Saudi Arabia of its obligations under the UN Convention against Torture. They urged the authorities to recognise core international human rights instruments, including the two International Covenants, as soon as possible, to establish an official moratorium on all executions with a view to the complete abolition of the death penalty, and to allow external scrutiny, including by accepting pending country visit requestsOpens in new window from the Council-mandated Special ProceduresOpens in new window section.

The experts have already contacted the Government, the Saudi Public Investment Fund and the Neom Company, as well as 18 foreign companies and the States where they are domiciled, to raise concerns over the issue.

Independent human rights experts are appointed by the UN Human Rights Council, in Geneva. They are mandated to monitor and report on specific thematic issues or country situations. They are not UN staff and do not receive a salary for their work.