CANADA: Government to amend Investment Canada Act

Tuesday May 7 2013

It is being reported that the federal government is preparing to pass Investment Canada Act amendments that would broaden the definition of “state-owned enterprises” and could subject state-owned enterprises` acquisitions of minority stakes in Canadian companies to investment reviews to determine whether they represent a net benefit to Canada.

The measures are contained in a bill tabled by Finance Minister Jim Flaherty last week, and are expected to be passed into law before the Commons recesses for the summer next month.

The bill follows the release in December 2012 of a Policy statement and revised guidelines on foreign investment by state-owned enterprises, which signalled the increasing regulation of investment by SOEs in Canada.

This information will be updated as further details become available.