Developments In Canadian Foreign Investment Review

The high level of activity of foreign acquirors and investors in the natural resources area, particularly in the mining sector, has resulted in heightened interest in the requirements of the Investment Canada Act and recent developments relating to the legislation.

Under the Investment Canada Act, a direct acquisition of control of a Canadian business is generally subject to review if the acquiror is not Canadian and the asset value of the Canadian business exceeds C$312 million. Under amendments expected to come into force later this year, the review threshold will increase to an enterprise value of C$600 million or more, and the threshold will further increase to C$1 billion over the next four years.