Strategic nonsense

In opposing the recent attempted acquisition of Potash Corp. by BHP Billiton, the Prime Minister and several premiers referred to potash as a “strategic asset.” In recent years, other national governments have blocked foreign acquisitions of domestically owned companies on similar grounds. The actions have often involved natural resource companies. They have also involved companies in the defence industry or, as in the case of the proposed purchase of Auckland’s international airport by (somewhat ironically) the Canadian Pension Plan Investment Board, infrastructure assets.