By
What you need to know
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The block in
Canada's posture on such investment activity is consistent with recent actions taken byAustralia , theEuropean Union andthe United States .- Though
Canada has subjected fewer inbound investments to economic "net benefit" toCanada review under the ICA, the broader and separate national security test has emerged as a key risk factor for inbound foreign acquisitions and investments, particularly those involving state owned or state influenced investors. Having said this, it remains the case that full-blown national security reviews are rare. - Any defence-related industries;
- Businesses with access to sensitive data;
- Critical infrastructure or entities providing vital services for it; or
- Any businesses involved in public health or the supply of critical goods and services to Canadians (including energy, utilities, food, health, and water), as these are historically the most-sensitive industries.
The transaction
The blocked transaction, by which
The national security review provisions
This is the first block of an investment under the ICA's NSR provisions since the takeover of
Under the NSR provisions, the government can review virtually any investment of any value into
Which investments need to be prepared for national security review
There is a clear trend toward the government applying heightened scrutiny under the NSR provisions to investments into
Advance consideration of the national security test is particularly essential where the investment is in any of the following:
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Canadian natural resources;
If the NSR process is launched prior to an investment's completion, it cannot legally close until the process is completed. If the investment is already complete, the government can order any remedy to address what it considers to be a threat to
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