Canada’s Minister of Innovation, Science and Industry, the Honourable François-Philippe Champagne (the “Minister”), announced on December 7, 2022 his commitment to protecting Canada’s economic and national security. Focused on key sectors such as critical minerals and artificial intelligence, the Minister tabled Bill C-34, the National Security Review of Investments Modernizations Act, (“Bill C-34”) which significantly amends the Investment Canada Act (the “Act”) for the first time since national security provisions were introduced in 2009. Bill C-34 is directed at modernizing the Act to better guard  against economic-based security threats that may arise from foreign investment and streamlining the existing national security review process. The amendments aim to enhance transparency, support greater investor certainty, improve Canada’s visibility on investments, and ensure that Canada is prepared to take action quickly where required.

Continue Reading Canada Announces Significant National Security Changes to Investment Canada Act

On October 28, 2022, the Director of Investments issued his Annual Report on the administration of the Investment Canada Act (“ICA”) for the fiscal year commencing April 1, 2021 and ending March 31, 2022 (the “2021/2022 fiscal year”). The Annual Report provides insight on key trends relating to foreign investment and national security reviews in Canada.

Continue Reading Canada Lays out Direct Path to National Security Review for SOE-implicated Investments in Critical Mineral Sector

On October 28, 2022, the Director of Investments issued his Annual Report on the administration of the Investment Canada Act (“ICA”) for the fiscal year commencing April 1, 2021 and ending March 31, 2022 (the “2021/2022 fiscal year”). The Annual Report provides insight on key trends relating to foreign investment and national security reviews in Canada.

Continue Reading Investment Canada Act: 2021/22 Annual Report

As discussed in our previous post, on April 18, 2020, the Minister of Innovation, Science and Industry released a policy statement announcing that, in light of the evolving COVID-19 pandemic, certain foreign investments into Canada will be subject to enhanced scrutiny under the Investment Canada Act (the “Act”).

Continue Reading Enhanced Scrutiny of Foreign State-Owned Investors / Critical Infrastructure at the Heart of Canadian National Security Concerns

Investment Canada Act threshold exemption for European Union companies directly acquiring Canadian businesses increases to $1.5 billion effective September 21, 2017

Effective September 21, 2017, most of the provisions contained in the Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act (Act), including those provisions amending the Investment Canada Act, will come into force.

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Canada’s planned increase to the generally applicable threshold for “net benefit” reviews under the Investment Canada Act (ICA) from $800 million to $1 billion became effective June 22, 2017. The new $ 1 billion threshold, which is calculated using the enterprise value of the Canadian business being acquired, should have the effect of exempting most

complex-664440_1280In what appears to be a dramatic shift in Canada’s foreign investment review policy, the federal government has recently approved the acquisition of ITF Technologies Inc. (“ITF”), a Montreal-based technology firm, by O-Net Communications Holdings Limited (“O-Net”), a Chinese developer of optical networking components, which is said to be effectively controlled