Canada won't introduce test for takeovers this year
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TORONTO, Oct 15 (Reuters) - Canada will not introduce a national security test for foreign takeovers of Canadian firms until next year, the Minister of Finance Jim Flaherty said on Monday.
"The idea is to have something in the new year on the national security issue. Not this year," Flaherty told Reuters in an interview.
The Conservative-led government is working on legislation that would allow it to block investments by state-owned or state-controlled firms on national security grounds.
It has said the new rules would not apply to deals in progress, such as state-controlled Abu Dhabi National Energy Co's (TAQA.AD: Quote, Profile, Research) proposed C$5 billion ($5.2 billion) takeover of oil and gas producer, PrimeWest Energy Trust (PWI_u.TO: Quote, Profile, Research).
Separately, Minister of Industry Jim Prentice said he wants the national security test in place before June 2008, when a panel reviewing Canada's competition policy is due to issue a report.
"The real question is issues of transparency, governance, and ... adherence to market principles," Prentice told reporters.
"Canada is open to foreign investment through the Investment Canada Act. We want to ensure that the Investment Canada Act in no way becomes a vehicle for protectionism."
AI
