Wednesday, May 25, 2011
Posted by D. Daniel Sokol
D. Jeffrey Brown and Michael Kilby (Strikeman Elliot) ask Canada: Still Open for Business? PotashCorp and the Investment Canada Act.
ABSTRACT: In three recent foreign investment review decisions, the Canadian Minister of Industry has either blocked or sought to impose post-closing sanctions on mergers and acquisitions of Canadian target companies. These decisions remind antitrust practitioners that, in some countries, foreign investment may be submitted to scrutiny beyond traditional merger control. This article analyses the situation in Canada, critically assessing the approach used by authorities in their review of foreign investment transactions. Notwithstanding recent events, the article concludes that Canada remains open for business, with increasingly open policies and ongoing recognition of the importance of encouraging foreign investment.