Impact of Potential Hostile Bid
The U.S. Department of Justice (DOJ) presided over Saskatchewan Wheat Pool’s (SaskPool) hostile bid of Agricore United. The DOJ investigated the C$1.8 billion combination due to concerns that it might adversely harm U.S. consumers. Pressure to gain rapid regulatory clearance was intensified due to the nature of the hostile bid and pressure from financial backers.
Edgeworth Partner Dr. Parker M. Normann provided expert consulting services, presenting before DOJ. Dr. Normann’s analysis, which included a critical loss analysis, showed:
- U.S. buyers had ample alternatives
- Raising prices would be unprofitable for the combined entity
All concerns raised by the DOJ were favorably resolved and the deal closed in a timely manner.