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Alberta’s energy, agriculture and technology companies attract foreign investors. If a non-Canadian is buying or setting up a Canadian business, the federal Investment Canada Act may apply, and it can affect timing and terms.
Notification and review
Depending on the size and type of the transaction, a non-Canadian acquiring control of a Canadian business generally has to file a notification or seek approval under the Act. Larger deals can be reviewed to decide whether they are of net benefit to Canada. Thresholds change over time and depend on the investor’s country and the type of business, so they should be checked for the date of the deal.
A filing may be required before closing or shortly after, depending on the category.
National security
Separate from the net benefit review, the government can look at investments that may raise national security concerns, including smaller investments and minority stakes. The rules have tightened in recent years, particularly for sensitive sectors and state-owned investors.
Sectors such as critical minerals, energy infrastructure and data can draw closer scrutiny.
Practical steps for a deal team
Decide early whether a filing is needed and who is responsible for it. Build the timing into the purchase agreement, including conditions to closing and outside dates. Consider whether undertakings to the government, such as commitments on jobs or investment, may be requested.
For an acquisition team
- Confirm the buyer’s status and the target’s business type before assuming no filing is needed.
- Check whether the sector could raise national security questions.
- Write the filing, approval and outside-date mechanics into the purchase agreement.
- Prepare early for questions about investment plans and jobs.