Invest_in_Canada

Invest in Canada

Invest in Canada

Canadian governmental organisation


Invest in Canada is an arms-length Government of Canada organization that promotes and attracts foreign direct investment into Canada. It was created through the Investment Canada Act and launched on March 12, 2018[1] as a departmental corporation.

Quick Facts Agency overview, Formed ...

History

Before the Invest in Canada agency was created, a division within the federal department Global Affairs Canada led the promotion of investment into Canada. In 1985, the Government implemented the Investment Canada Act to govern foreign direct investment. The Harper government used to limit foreign investment to no more than 50% share,[2] through a policy designed by Nigel S. Wright during his time at the PMO.

Foreign direct investment (FDI) by country[3] and by industry[4] are tracked by Statistics Canada; the total in 2012 of FDI was CA$634 bn.[3] New FDI inflow to Canada in 2011 was CA$40.8 bn.[5] Canada was host to CA$33 bn in state-owned enterprise investment over the period between 2005 and 2012.[6] Over the same period, the net FDI increased by CA$236.1 bn, so that SOE FDI was almost 14% of the total. Conversely, Canadian SOEs limit themselves to domestic affairs. The SOE of Canada are not aggressive in this manner: Canadian SOEs have no foreign investments.

The Canadian government is planning to raise to CA$1 bn the amount of foreign money that can go into a Canadian company before the investment is reviewed. As of 2012, an investment or takeover of a Canadian business by a WTO investor worth CA$330 mn or more triggers a federal review under the Investment Canada Act. The WTO was implemented in Canada by the World Trade Organization Agreement Implementation Act in 1994.[7] Innovation, Science and Economic Development Canada provides a helpful webpage with this information and explains that WTO members are eligible for CA$344 mn review-free investment as of 12 January 2013.[8] The WTO maintains a membership list.[9] The information on the WTO "amount" permitted by the discretion of the Minister of Industry under subsection 14.1(2) of the Investment Canada Act is published annually in January in the Canada Gazette. The government investigates whether the investment is of "net benefit" to Canada, which brings into play a nebulous political definition.[10] Amounts inferior to this limit do not incur political oversight under the Investment Canada Act, so that the foreign investor is treated like any other Canadian investor. This means effectively, that Canada is open to reverse takeover by stealth. Prime Minister Harper clarified this FDI policy area in Toronto on 7 November 2013 when he said that a little wiggle room was needed on foreign takeover rules.[11]

Bonds

On 5 November 2013, British Columbia finance minister Mike de Jong reported a successful placement of Chinese RMB$2.5bn in dim sum bonds.[12] The issue was five times oversubscribed.

Investments

2004–05

2006

  • In January, ArcelorMittal took over Dofasco, for CA$5.5 bn.[16]
  • In August, Xstrata (subsequently delisted) CA$16 bn purchased for US$22.5bn Falconbridge Ltd. (subsequently delisted)[17]
  • In October, Vale purchased 86% of INCO (subsequently delisted) for CA$15 bn[18]
  • In 2006 and 2007, Sinopec Shanghai Engineering Co. Ltd.'s Canadian subsidiary named SSEC Canada Ltd was hired by Canadian Natural Resources to build a structure on their Horizon Oil Sands project. On 24 April 2007, two Chinese temporary foreign workers were killed and five other Chinese temporary foreign workers were injured. SSEC was fined in October 2012 CA$1.5 mn for the incident. Investigations later determined that 132 SSEC workers had been unpaid since the start of their employment with SSEC. SSEC fled the country and the government was unable for a number of years to serve it legal documents.[19][20]

2007

2008–12

2013

2014

  • On January 31, Norwegian SOE Statoil and Thailand SOE PTTEP announced their plan to split their 60-40 joint-venture in the Kai Kos Dehseh oilsands project, so that they would each control 100% of their own leasehold properties. PTTEP spent $2.3bn on the joint venture in 2011. PTTEP got the "Thornbury", "Hangingstone" and "South Leismer" leases, while Statoil obtained the "Leismer" and "Corner" properties and was to pay $200mn to PTTEP.[64][65] However, in September, Statoil postponed its investment in the "Corner" project.[65]
  • On February 12, Mexican baker Grupo Bimbo announced a $1.83bn takeover of Canada Bread, a publicly traded corporation which had been controlled by Maple Leaf Foods.[66] Canada Bread sales in 2013 were estimated at $1.6bn, and its employees numbered 5,400.[66] By contrast, Bimbo employs 126,000 people at 144 plants in 19 countries, including Mexico, Latin and South America, the United States, Europe and Asia.[66]
  • Canada's fifth-largest independent oil producer, Talisman Energy, was purchased by Repsol, the Spanish oil major, for $8.3 billion plus the assumption of $4.7 billion of Talisman's debt.[67][68]

The oil sands in Alberta cover a vast area, and the pipelines needed to ferry their output to the BC coastline, where it will be transported by ship to Asian markets, span a wide range of investments. Many joint venture projects with foreign firms exist because Canadian capital is insufficient. Examples of news articles that have yet to be harvested for this wiki are a CBC article,[69] and the BC regulator,[51] as well as p. 13 of a report from Ernst and Young.[70]

2015

  • On 16 April, the Saudi Agricultural and Livestock Investment Co. (SALIC) partnered with U.S. agribusiness giant Bunge Limited to form Global Grain Group (G3), which will be the majority owner of Winnipeg-based Canadian Wheat Board with an investment valued at $250-million.[71][72][73] As the principal was less than the government-regulated threshold, the investment incurred no review.

2016

  • Thalmic Labs, a wearable computing start-up, invested US$158 Million
  • Real Matters, a property valuation services, received US$100 Million
  • Buildscale, a video marketing platform, received US$49 Million[74]
  • BlueRock Therapeutics, operating in regenerative medicine, received US$295 Million by Versant Ventures
  • Dal Cor Pharmaceuticals received US$126 Million by Sanderling Ventures
  • Zymeworks, operating in antibody and Protein Therapeutics, received US$87.8 from BDC Capital[75]

2017

  • One large investment in 2017 was the purchase by Hong Kong's Li Ka-Shing, who purchased Reliance Home Comfort—a water heater and air conditioning firm—for $2.82 billion.[76]
  • In March, Teutech Industries—a Guelph, Ontario, based manufacturer of precision machined and heat treated powertrain components—was acquired by Indian auto component manufacturer Hi-Tech Gears at US$44 million investment[77]
  • A Chinese consortium purchased privately held Valiant-TMS which designs and builds automated production systems.[78]

References

  1. "Statistics Canada Foreign Investment by Country" (PDF). Archived from the original (PDF) on 2019-09-19. Retrieved 2013-10-28.
  2. "FDI by industry (NAICS)" (PDF). Archived from the original (PDF) on 2019-06-17. Retrieved 2013-10-28.
  3. "Financial Post: "How Xstrata won Falconbridge"". Archived from the original on 2013-10-03. Retrieved 2013-09-27.
  4. "Abitibi, Bowater merging to create forestry giant". CBC News. 2007-01-30. Retrieved 2009-04-16.
  5. "Rio Tinto, Alcan reach US$38.1-billion merger deal". CTV.ca. 2007. Retrieved 8 August 2007.
  6. "Nova Chemicals: "Company History and Development"". Archived from the original on 2013-04-24. Retrieved 2013-09-27.
  7. "China's Sinopec takes $4.65-billion US stake in oilsands with ConocoPhillips buy". Vancouver Sun. 13 April 2010. Archived from the original on 2014-01-21. Retrieved 1 April 2012.
  8. "ConocoPhillips Sells Syncrude Stake to Sinopec". Press Release. RigZone. 25 June 2010. Retrieved 25 June 2010.
  9. Report on Business Magazine, Nov 2013
  10. ""Merit Mining Corp. Changes Name" 15 Dec 2010 Huakan press release". Archived from the original on 18 March 2016. Retrieved 26 October 2013.
  11. Rebecca Penty (November 1, 2012). "Husky Profit Rises on Refining Margin as Production Falls". Bloomberg.
  12. "Berkshire Hathaway, 3G Buying Heinz for $23.3 Billion". Cnbc.com. November 21, 2012. Retrieved 2013-02-14.
  13. "U.S., Saudi firms to buy former Canadian Wheat Board". The Globe and Mail. 15 April 2015. Retrieved 15 April 2015.
  14. JLL (2016). "Technology Outlook 2016, Canada" (PDF). Jones Lang Lasalle. Archived from the original (PDF) on 2018-07-06. Retrieved 2018-07-06.
  15. "Canadian Venture Capital Review Full Year 2016" (PDF). Canadian Venture Capital Review Full Year 2016. 2016. Archived from the original (PDF) on 2017-02-27. Retrieved 2018-07-06. {{cite journal}}: Unknown parameter |agency= ignored (help)
  16. Group, SKP (2017). "Investment Chronicle January – March 2017" (PDF). Investment Chronicles by SKP Group.

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