Canada

Canada

Approves new guidelines for the screening of foreign investments by State-owned enterprises (SOEs)

07 Dec 2012

The Prime Minister announced new criteria for the review of foreign investments, especially by state-owned enterprises (SOEs), which will take into account the following considerations: 1) the degree of control or influence a SOE would exert on the Canadian business; 2) the degree of control or influence a SOE would exert on the industry in which the Canadian business operates; and 3) the extent to which the foreign Government would exercise control or influence over the SOE acquiring the Canadian business. In addition, the threshold for review of acquisitions by SOEs will remain at C$330 million, whereas the threshold for transactions by private foreign investors will rise to C$1 billion in a period of up to four years. The Prime Minister also mentioned that investments to acquire control of a oil sands businesses will only be approved exceptionally in the future.

Nature of measure:
  • Liberalization
  • Facilitation
Type:
  • Entry and establishment (Ownership and control, Approval and admission - screening)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: