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ARTICLE · 01 AUGUST 2014

Is "Net Benefit" To Canada Different For State-Owned Enterprise Investments?

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Investments in Canadian businesses by foreign state-owned enterprises may receive greater scrutiny than investments by non-state owned enterprises.

CanadaEnergy and Natural Resources
Oliver J. Borgers
Oliver J. Borgers
Michele Siu
Michele Siu
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Investments in Canadian businesses by foreign state-owned enterprises1 ("SOE") may receive greater scrutiny than investments by non-state owned enterprises.  The Canadian government has made it clear that investments by SOEs will be assessed differently than other investments under the Investment Canada Act.    For example, at the end of 2012, the Minister of Industry indicated that investments by SOEs to acquire control of a Canadian oil sands business will, going forward, only be approved on an exceptional basis2.  This focus on SOE investors, which will likely result in more SOE investments being scrutinized under the Minister's pre-closing review and approval, is reflected in recent amendments to the Investment Canada Act and related guidelines:

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