M&A Regulatory Environment Hits A "Fork In The Road"

The federal government has updated its guidelines for the national security review of foreign investments under the Investment Canada Act, which introduces "economic security" as a new criterion by which the government will assess foreign investment.

These changes come during the tariff dispute between Canada and the U.S. and could have an impact on numerous industries across Canada, partner and co-head of Torys' Competition and Foreign Investment Review practice Dany Assaf told Lexpert.

The regulatory environment for M&A dealmaking is currently at a "fork in the road," Dany said. While some sectors—such as critical minerals, critical infrastructure, and sensitive technology—will be in the spotlight with the new economic and national security rules in place, the rules could impact other sectors over time, such as agriculture and food security, for example.