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ARTICLE · 21 JANUARY 2008

New State-Owned Investor Guidelines Released

Two months ago, Jim Prentice, Canada’s Minister of Industry, announced that the Government of Canada would develop new guidelines for acquisitions in Canada by state-owned enterprises (SOEs) such as sovereign wealth funds and national oil companies.

CanadaStrategy

Two months ago, Jim Prentice, Canada's Minister of Industry, announced that the Government of Canada would develop new guidelines for acquisitions in Canada by state-owned enterprises (SOEs) such as sovereign wealth funds and national oil companies.

On December 7, 2007 the Minister issued new guidelines on how the "net benefit to Canada" requirement set out in the Investment Canada Act (the Act) will be applied by the Canadian government when SOEs acquire major investments in Canada. The issue of screening investments on the basis of national security, which may also affect investments by SOEs, has been deferred until sometime in 2008.

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