Net Benefit Reviews Under The Investment Canada Act – Some Practical Thoughts

The Investment Canada Act ("ICA") has two key strings to its bow – National Security reviews and Net Benefit reviews. Recently, the National Security issues have been attracting all the attention: required dispositions by Chinese investors of their interests in three lithium producers (lithium being only one of 31! "critical minerals"); an increased focus on personal data, sensitive technology, health issues and critical infrastructure; Bill C-34 amendments to significantly toughen the regime – amongst other developments.

By contrast, the more traditional work of the ICA – determining whether the acquisition of control over Canadian companies by non-Canadian investors will be of "net benefit" to Canada – has received less emphasis. This is in part because the size thresholds, beneath which transactions are not subject to net benefit review, have increased significantly (up to C$1,931 million in many cases – see our thresholds chart for 2023). As a result the