Foreign investments are now more than ever subject to enhanced scrutiny. On top of this, the Investment Canada Act—that provides for the notification and review of certain business investments by non-Canadians—includes an opaque and increasingly utilized national security review regime. This is further complicated by additional federal and provincial legislations specific to industries such as banking, film distribution, telecommunications, and mining and energy including concerns of land ownership. Our Competition, Marketing & Foreign Investment (CMFI) team advises foreign clients (including state-owned enterprises and sovereign wealth funds) investing in Canada on how to navigate and obtain foreign investment clearance.
There is no clear definition of what is “national security” in Canadian law, although in practical terms, national security relates to any action or event that could materially impact the health, safety, security or economic well-being of Canadians. To make sure we proactively assess and incorporate all—including the opaque—aspects of a national security review process, our CMFI team works collaboratively with the Firm’s National Security group to help clients be better equipped to address potential issues that may arise.
We work closely with private and public clients in many industries including mining, technology, life sciences, finance, transportation, broadcasting, food, health care, professional services, cultural industries and others.
In South Africa, a national security provision has been signed into law, but is not yet in effect. However, because of the seamless nature of our collaboration with colleagues in all our offices worldwide and in particular in Canada, our team is able to draw on the extensive experience of national security review in Canada, which ideally places our Competition, Marketing & Foreign Investment team in South Africa to navigate this complex new law the moment it becomes effective.
Contact us if you are considering a foreign investment in Canada or South Africa. Our team has significant experience advising clients on all aspects of Canada’s foreign investment.
