CANADA: Implementation of amendments to the Canadian Investment Canada Act

Wednesday July 17 2013

Further to the update of 7 May 2013, it has been reported that the amendments to the Canadian Investment Canada Act contained in the 2013 budget implementation bill (C60) have been implemented without change. Under the revised regime, undertakings relating to State Owned Enterprise (SOE) operation in a commercial manner are likely to be of longer duration and subject to more frequent monitoring than regular Investment Canada Act “net benefit” undertakings.

In addition, the definition of ‘State Owned Enterprises’ has been broadened. A SOE is now defined to include an entity that is directly or indirectly controlled or influenced by a foreign government or agency. The SOE definition also includes the foreign government or agency itself, as well as an individual acting under the direction or influence of a foreign government or agency. The Minister of Industry now also has the ability to make determinations in relation to whether or not an entity is in fact under the control of an SOE.

The amendments follow 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.