Canada’s government will announce “fairly soon” new rules for foreign takeovers of Canadian companies, Finance Minister Jim Flaherty said Wednesday, as China and Malaysia eye Canadian oil and gas firms.
“I can’t speak to the timing,” the minister told reporters. “I can say that it’s been given priority. We’re aware of the need for clarification.”
“It’s a very important issue. It’s absolutely imperative that the government gets it right and so one must be cautious and prudent and analytical when approaching an important issue like that,” he added. “It will be fairly soon.”
The Investment Canada Act sets out criteria for the industry minister to consider when assessing whether foreign acquisitions of Canadian firms are of net benefit to the country.
The test includes whether the buyer is owned or controlled by a state, whether the deal poses a threat to national security and whether or not it would bolster Canada’s economy.
Still, most feel in the dark on the actual criteria, arguing that the act is too vague.
The proposed takeover of Calgary-based oil and gas company Nexen by China’s state-owned CNOOC for Can$15.1 billion is now being considered by Industry Minister Christian Paradis. An announcement is due by Monday.
Paradis is also reviewing Malaysian giant Petronas’ revised bid for Progress Energy Resources after a first proposal was rejected in October. That deal is estimated to be worth US$5.5 billion.
Canada to unveil new takeover rules 'fairly soon': Flaherty
