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ARTICLE · 13 JANUARY 2022

Investment Canada Act: New Monetary Thresholds For 2022

Under the Investment Canada Act (the "ICA"), the direct acquisition of control of a Canadian business by a non-Canadian may be subject to a pre-closing review and approval process (a "Net Benefit Review") ...

CanadaInternational Law

Under the Investment Canada Act (the "ICA"), the direct acquisition of control of a Canadian business by a non-Canadian may be subject to a pre-closing review and approval process (a "Net Benefit Review") if a specified monetary threshold is exceeded. When officially published in the February Canada Gazette, the following thresholds for Net Benefit Reviews will be effective from January 1, 2022:

Trade Agreement Investors: For a direct acquisition of control of a Canadian (non-cultural) business involving either a purchaser or a controlling vendor that qualifies as a trade agreement investor, the threshold is C$1.711 billion in enterprise value, provided that the purchaser is not a foreign state-owned enterprise. A trade agreement investor includes an entity or an individual whose country of ultimate control is a party to one of the following trade agreements:

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