China Resources

[Tackler]

NP says kill Noranda deal with China Minmetals

2004-09-28 09:22 ET - In the News

See In the News (C-NRD) Noranda Inc

The National Post reports in its Tuesday, Sept. 28, edition that Ottawa should find a way to scuttle China Minmetals' takeover play for Noranda. The Post's Terence Corcoran writes in the FP Comment column that killing the deal would not be easy under international law or even Canadian law. The Post says nothing about this takeover makes business, political or ideological sense. Mr. Corcoran says no country needs to secure ownership of resources all over the globe to supply domestic industries, unless, of course, that country is run as a giant totalitarian state. Mr. Corcoran sees no national Chinese advantage in owning a company such as Noranda. China Minmetals' corporate strategy has all the markings of an out-of-control conglomerate, says Mr. Corcoran. Minmetals holds no expertise that it can bring to Noranda's international operations. The combination holds no competitive advantages in creating major market efficiencies. Mr. Corcoran says we would not let Ottawa take over Petro-Canada today. How can we stand by while China nationalizes Noranda, he asks. Mr. Corcoran insists that Minmetals' bid for Noranda is not another corporate takeover between free enterprise nations.