New Investment Canada Act Review Threshold Announced

The Federal Government has just provided notice that the general threshold for review under the Investment Canada Act for a direct acquisition of control of a Canadian business by WTO investors for 2008 will be C$295 million. This direct acquisition review threshold is adjusted annually for inflation and growth in Canada's GDP and normally refers, (a) in the case of an acquisition of the assets used in carrying on a Canadian business, to the gross book value of those assets, (b) in the case of an acquisition of control of an entity carrying on a Canadian business, to the gross book value of the assets of that entity, and (c) in the case of an acquisition of control of an entity carrying on a Canadian business and of control of one or more other entities in Canada, to the gross book value of the assets of that entity and all other entities the control of which is being acquired.