ANNOUNCEMENT 25 Mar 2015In March 2015, the government of Canada announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Amendments to the Investment Canada Regulations and the National Security Review of Investments Regulations were published in the Canada Gazette on March 25, 2015. The most significant of the changes made by these amendments is an increase in the threshold for foreign investment review.
Prior to these amendments, Industry Canada applied a $369 million threshold for the review of direct acquisitions of Canadian businesses involving foreign investors. Acquisitions under this level had to be notified to Industry Canada but did not require review and approval.
The Government of Canada has been committed since 2009 to raise that threshold. Under these long-awaited amendments, the enterprise value review threshold will be $600 million for a two-year period, $800 million for a further two-year period, and $1 billion for a further year. Thereafter the level will be subject to inflationary indexing.
The increases will be effective as of April 24, 2015. They do not apply to acquisitions by state-owned enterprises (SOEs).