In 2012 the government reviewed its guidelines on how it will evaluate proposed acquisitions of Canadian businesses by foreign investors and, in particular, state-owned entities (SOEs). The revised guidelines and the government's announced policy as it relates to SOE investment in Canada continue to allow the government much flexibility in its decision-making process as it relates to such investors.
The industry minister recently approved the high-profile proposed acquisitions by China National Offshore Oil Corp of Nexen Inc and by Petroliam Nasional Bhd of Progress Energy Resources Corp. In both instances the minister found that the deals were of 'net benefit' to Canada. In connection with this approval, the government has released a policy statement and revised guidelines on proposed investments by state-owned enterprises.
After almost 12 months of consultations and research, Canada’s Competition Policy Review Panel has issued its report. Many substantive and procedural recommendations of the panel are, for the most part, positive contributions to necessary and long-overdue reforms. This update looks at the key M&A-related recommendations of the report.