Tag archives: foreign investment

Canadian Government Announces New Policy Applying “Enhanced Scrutiny” to Certain Foreign Investments During COVID-19

Market Contraction

The financial markets and global economy have experienced a precipitous decline and substantial volatility due to the economic impact of the ongoing COVID-19 pandemic. This has had a significant and immediate impact on the level of M&A activity, both in Canada and globally, as companies are shelving deals or simply walking away entirely.

In fact, Thomson Reuters, citing data from the financial research firm Refinitiv, recently reported that there was a 57% decline in M&A activity in Q1 2020 as compared to Q1 2019, as Canadian M&A activity dropped to its lowest level since 2015. Globally M&A activity … Continue Reading

Not all bad news amidst African M&A decrease

Recent reports have suggested a precipitous decline in mergers and acquisitions (M&A) in Africa. In the first half of 2018, total deal volumes and values of M&A transactions declined with a 44% decrease in deal volume and a 57% decrease in aggregate value, in comparison to figures in the preceding year. In fact, M&A transactions on the continent have been on a steady decline for a few years now, as their value has dropped from $64.9 billion in 2015 to $32.4 billion in 2017.

Several theories have been posited in the attempt to explain this decline, including corruption and bad … Continue Reading

Will Canada soon be a global leader in the cannabis space?

Recently, the Cannabis Act was granted Royal Assent, resulting in the official passing of the legislation for legalizing cannabis in Canada. The Act is expected to be in force as of October 17, 2018.

The Canadian government’s decision to legalize recreational marijuana may significantly impact capital markets and M&A deals. The decision to legalize recreational marijuana at the federal level is unique to Canada, compared to other jurisdictions like the U.S. where it remains illegal federally and is currently regulated by states (such as Colorado, California and Washington).

While the state model in the U.S. has experienced some early success, … Continue Reading

Doing business in Canada: M&A considerations

canadian-flag-on-buildingCanada is a top destination for foreign companies and investors attracted to our wealth of natural resources, stable and sound political and financial systems, and world-class infrastructure. While Canada is an open economy and welcoming of foreign investment, there are issues that corporations and investors should keep in mind when doing business in Canada. Norton Rose Fulbright’s guide, Doing Business in Canada, provides a general overview of the principal corporate, tax and other legal considerations that would be of interest to foreign businesses wishing to establish or acquire a business in Canada.

Of particular interest in the M&A context, … Continue Reading

CETA may be good for business in M&A

Earlier this month, Canada and the European Union unveiled the Comprehensive Economic and Trade Agreement (CETA), a trade initiative designed to benefit Canadians — from individual workers and consumers to large scale corporations — by way of eliminating tariffs for Canadian goods entering the EU market and facilitating secure and preferential market access by Canadian service suppliers in the EU.

While CETA will not be in place until 2015, it will undoubtedly have widespread implications for most sectors of the Canadian economy. The EU is Canada’s second largest trading partner behind the United States, and it is believed that the … Continue Reading

Doing business in Canada – Competition and foreign investment laws

The federal Competition Act sets out a framework to promote and maintain fair competition and applies to Canadians and non-Canadians alike.

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The chapter on Competition and Foreign Investment Laws (pdf 186kb) in our guide to Doing business in Canada addresses sections of the Competition Act relevant to an acquirer of an existing Canadian business, and also speaks to practical considerations, confidentiality and regulation of anti-competitive practices.

In addition, the chapter considers the applicability of the Investment Canada Act in M&A transactions and, more specifically, what constitutes a reviewable or notifiable transaction thereunder.

In light of recent changes to the Investment Continue Reading

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