Article: Potential New Impediments To M&A Transactions: Restrictions On Foreign State-Owned Enterprises And A New National Security Test In Canada.(Investment Canada Act)(U.S. Foreign Investment and National Security Act of 2007 )

Canada

On October 9, 2007, Jim Prentice, Minister of Industry, announced that this fall the government of Canada will consider

introducing new guidelines on takeovers by foreign state-owned enterprises; and

amending the Investment Canada Act to permit the review of foreign investments that could compromise Canada's national security.

The Minister's announcement appears to preempt the work of an expert Competition Panel that the government charged with considering these and other issues, and that is due to report in June 2008.

Foreign State-Owned Enterprises

On the issue of investments by foreign state-owned ...

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