Deals
Trumpism Doesn’t Play in Canada, Which Just Eased Foreign Takeover Rules
- Foreign investment threshold rises to C$1 billion next year
- Change would free 53 companies from automatic govt review
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Prime Minister Justin Trudeau, bucking a global trend toward greater protectionism, will loosen foreign takeover rules for more than 50 Canadian publicly traded companies next year, including those in mining, oil and marijuana production.
Finance Minister Bill Morneau announced this week Canada would raise the threshold for automatic government review of acquisitions to C$1 billion ($747 million) in enterprise value in 2017, rather than 2019 as previously scheduled. The hike from the current C$600 million will be enacted through legislation, although the timing hasn’t been set. companies that fall under the new threshold range from miner Dominion Diamond Corp. to marijuana producer Canopy Growth Corp.