Canada mulls new takeover rules

[dArKeR]

Canada's government introduced a bill yesterday that would allow it to block foreign takeovers of local companies -- both large and small -- purportedly for national security reasons.
Existing legislation allows Canada to intervene in transactions worth more than C$250 million (US$200 million). The amendments to the Investment Canada Act would allow the government to nix takeovers worth less than C$250 million.

It comes only days after allegations surfaced of Chinese corporate espionage in this country and less than one year after a failed takeover bid by the state-controlled China Minmetals Corp (??????) for Canadian mining behemoth Noranda Inc, which first sparked concern about foreign ownership rules.

http://www.taipeitimes.com/News/worldbiz/archives/2005/06/22/2003260311

[pansypoo53219]

1. but ok if

china buys maytag here.

[dArKeR]

3. Unocal

[Maple]

2. Canada doesn't intend to stop foreign investment

"We expect these reviews will be rare, as existing tools are generally adequate in addressing potential national security concerns," Emerson said in a release.

"However, we want to ensure that, should the need arise, we will have an appropriate mechanism under the revised legislation. We continue to encourage and welcome foreign investment and its benefits. This is an update of our security system, not a change in our investment policy."

The current legislation requires the government to examine all foreign acquisitions of Canadian companies with assets in most cases above $250 million, to ensure such deals would benefit Canada.

Under the new legislation, investment review for national security purposes could be carried out for deals of any size."

http://www.recorder.ca/cp/National/050620/n0620115A.html