The Investment Canada Act threshold for the review of direct acquisitions of control of Canadian businesses (other than those involved in cultural activities) by investors controlled in countries that are members of the WTO (or where control is acquired from sellers controlled in WTO-member countries) has now been officially raised to C$312 million for transactions closing in 2011. The threshold is indexed annually to account for inflation. Legislative amendments passed in 2009 would see this threshold increased to $600 million (rising incrementally over 3 years to $1 billion, and indexed for inflation thereafter), based upon the "enterprise value" of the Canadian business. These amendments have not been declared in force, however, as regulations defining the meaning of "enterprise value" have not been finalized.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.