Investment Canada Act Threshold Increases to $1 Billion (Cdn)
Investment Canada Act Threshold Increases to $1 Billion (Cdn)
As indicated in our April 2017 bulletin, the Government of Canada previously announced its intention to accelerate the scheduled increase of the “enterprise value” threshold under the Investment Canada Act to C$1 billion.
Bill C-44 has now received Royal Assent.[1] The new C$1 billion threshold will apply to investments implemented on or after June 23, 2017. Beginning January 1, 2019, the C$1 billion threshold will be adjusted annually by a GDP-based index.
The threshold generally applies to direct acquisitions by WTO Investors (firms controlled in WTO countries) that are not State-Owned Enterprises, and requires filing of an application for review, to determine whether the investment is “likely to be of net benefit to Canada”. The enterprise value threshold also applies for non-WTO Investors that directly acquire control of a Canadian business that was immediately prior to the investment controlled by a WTO Investor.
by Ryan Gallagher, Dan Edmonstone, François Tougas, James Musgrove
[1] Bill C-44 received Royal Assent on June 22, 2017.
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2017
Insights (5 Posts)View More
New Era of Foreign Investment Scrutiny Starts in Canada with Passage of Investment Canada Act Amendment Bill
Bill C-34 amends the Investment Canada Act to enhance the government of Canada's national security review powers.
Offer to Lease Listing Agreements – What to Look for as a Landlord Looking to Hire a Broker
What to look for when negotiating a listing agreement with a broker for an offer to lease commercial property as a landlord.
Opa! A Reminder to Employers on the Importance of Proper Investigations
Restaurant employee awarded significant damages for employer's failure to investigate sexual harassment allegations.
Behind the Screen: Navigating Law Enforcement Requests Post R v. Bykovets
Implications for law enforcement and private online companies responding to law enforcement requests for IP address information following R v. Bykovets.
Environmental Law: Recent Developments in Canada
Join McMillan on Tuesday, April 16th for a webinar highlighting recent developments in the Canadian environmental law landscape.
Get updates delivered right to your inbox. You can unsubscribe at any time.