Significant Changes To Investment Canada Act: Review Threshold Increased, Additional Information Required In Notification And Review Forms, National Security Review Timelines Extended

On March 25, 2015, the federal government announced the implementation of three important changes to the Investment Canada Act, each of which is summarized below.

By way of general background, the acquisition of control of a Canadian business by a non‐Canadian, or the establishment of a new Canadian business by a non‐Canadian, is subject to notification or review under the Investment Canada Act. Notification is not an impediment to closing, and is typically done within 30 days after closing.

At present, the notification form requires very basic information about the foreign investor and the acquired Canadian business, and can often be prepared in as little as an hour. Where review is required, detailed information about the foreign investor and the Canadian business and the investor's plans for the Canadian business must be submitted before closing, and closing can only occur if the government determines the transaction to be of "net benefit" to Canada.