Proposal to expand definition of state-owned enterprise in the ICA goes further than expected

Shuli Rodal

May 9, 2013

Jeff Lewis, National Post

(Extract)

Canada’s mixed messages on foreign investment from state-owned enterprises threaten to spook India’s major energy giants, the country’s top diplomat in Ottawa said Thursday.

Ottawa is contemplating tweaks to the Investment Canada Act that would broaden the definition of state ownership and potentially subject minority purchases of natural gas and oil sands assets to the opaque net-benefit test, according to an analysis by lawyers at Osler, Hoskin & Harcourt LLP.

...

Bill C-60, the government’s budget implementation bill, removes the so-called “safe harbour” that enables foreign companies to acquire less than one-third of voting shares, or a minority interest in a partnership or joint venture without prompting an Investment Canada review, Osler partner Shuli Rodal said in a May 2 analysis on the law firm’s website.

To read the Osler Update, authored by Michelle Lally, Peter Glossop, Peter Franklyn, Shuli Rodal and Matthew Anderson, please click here.

To read the full FP article, please click here