Case Name :      China Minmetals Corporation and Noranda Inc.

Authors :           Isaiah A. Litvak

Source :             Ivey Publishing

Case ID :            906M13

Discipline :        Business & Government Relations

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The proposed takeover of Noranda Inc. (one of the biggest mineral players in the world) by the Chinese state owned enterprise, China Minmetals Corporation, was cause for Canadian government concern as it required some understanding about the workings and objectives of state owned enterprises. There was particular concern around the labour issues and human rights violations in China, and the possible impact of these on the proposed takeover. Equally important, Canada ran the substantial risk of sending the wrong message to the People’s Republic of China if it was to block such a takeover, and in some respects, to be seen as shutting its doors to one of the world’s largest and most powerful emerging economies.