Trends in foreign investment review: Expanding role for national security in Canada’s foreign investment review

Most foreign investors will enter Canada without a hiccup. However, a small number of transactions may receive closer scrutiny under Canada’s foreign investment review law, the Investment Canada Act (ICA). In 2021, that scrutiny is increasingly likely to be in the form of review under the ICA’s national security review process rather than its “net benefit to Canada” review process. In particular, Canadian investments by companies controlled by foreign governments or individuals with close ties to foreign investments are continuing to be subject to elevated scrutiny as demonstrated by the government’s recent rejection of a Chinese SOE acquisition of a gold mining company in northern Canada. Click here to read more