Canada rethinks foreign takeovers
Thursday, 11 October 2007
Canada could subject foreign takeovers of domestic companies to a "national security test" as part of a rethink of overseas ownership of key assets, reports BBC.
Ministers said they would promptly look at new guidelines for foreign takeovers which would include "safeguards" to protect national interests.
A rash of recent takeovers has fuelled calls for current rules to be reviewed.
Germany, Japan and China are among leading economies that have constraints in place on the scope of foreign deals.
Ministers are already committed to reviewing current legislation on foreign takeovers - which requires deals to provide a "net benefit" to Canadians - by next summer.
However, industry minister Jim Prentice said the issues of national security and acquisitions by state-owned foreign enterprises, which many believe distort proper competition, needed to be addressed immediately.
Like other countries around the world, it is important that we have safeguards in place to protect our interests
While stressing that foreign investment was welcome in Canada, Mr Prentice said it was vital that relevant legislation was up to date and served the country's needs.
"Canada is open for business but it is not for sale," he said in a speech in Vancouver.
"Like other countries around the world, it is important that we have safeguards in place to protect our interests."
Ministers said they would promptly look at new guidelines for foreign takeovers which would include "safeguards" to protect national interests.
A rash of recent takeovers has fuelled calls for current rules to be reviewed.
Germany, Japan and China are among leading economies that have constraints in place on the scope of foreign deals.
Ministers are already committed to reviewing current legislation on foreign takeovers - which requires deals to provide a "net benefit" to Canadians - by next summer.
However, industry minister Jim Prentice said the issues of national security and acquisitions by state-owned foreign enterprises, which many believe distort proper competition, needed to be addressed immediately.
Like other countries around the world, it is important that we have safeguards in place to protect our interests
While stressing that foreign investment was welcome in Canada, Mr Prentice said it was vital that relevant legislation was up to date and served the country's needs.
"Canada is open for business but it is not for sale," he said in a speech in Vancouver.
"Like other countries around the world, it is important that we have safeguards in place to protect our interests."