Nigel Wright is to become Mr. Harper’s new chief of staff after Christmas. The Bay Street dealmaker, who is a managing director of buyout specialist Onex Corp., worked in former primer minister Brian Mulroney’s office as a speech writer and policy adviser.Tibor Kolley/The Globe and Mail
The appointment of Nigel Wright as chief of staff to Prime Minister Stephen Harper could be a game changer as far as the government's review of the hostile acquisition bid for Potash Corp. of Saskatchewan by BHP Billiton PLC.
The news Friday that the private-equity investor would soon be in what is viewed as one of the most powerful jobs in the country very soon "changed the tone on the debate overnight," said one senior banker.
Mr. Wright, who is moving to Ottawa to become Prime Minister Stephen Harper's chief of staff, focused on deals to buy assets in the aerospace industry as a private-equity investor at Onex Corp. That's often viewed as one of the most strategic there is.
In fact, Mr. Wright spent much of 2006 travelling back and forth to Australia working on a bid to buy Qantas, the country's national airline. That didn't work out, but Mr. Wright did succeed in leading acquisitions of aircraft makers in the U.S.
Given that background, what are the odds that he would favour blocking a deal by an Australian buyer for a Canadian asset, which would likely make it harder for Canadian companies like Onex to acquire abroad?
The betting on Bay St. is that he'll be more open to acquisitions than Guy Giorno, the current chief of staff to Mr. Harper, who is viewed as more politically opportunistic and likely to consider standing in the way of takeover bids if it wins votes.
Given the realities of politics, that viewpoint is unlikely to completely disappear with the departure of Mr. Giorno and the arrival of Mr. Wright, who is expected to start a transition period soon in preparation to take over around year end.
Mr. Wright may end up being the person who squares the two positions. With his experience in takeovers and the negotiations that go on around them, he may play a key role in crafting agreements with acquirors who are promising net benefits to Canada, and ensuring that they are enforceable while still not scaring off investment.