The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.
OTTAWA— Ottawa is promising to tell Canadians a lot more about foreign takeovers – the ones it reviews and the ones it rejects. That’s a good thing.
But it’s still well short of what the Conservative government pledged in late 2010 after abruptly killing BHP Billiton’s hostile bid for Potash Corp. of Saskatchewan.
Prime Minister Stephen Harper and then-industry minister Tony Clement promised two things. They said they would clarify the key test used to judge foreign takeovers – the so-called “net benefit” determination. And secondly, they said they would get the House of Commons industry committee to review the Investment Canada Act.
Neither of these things has happened. Instead, the government is giving the Industry Minister new powers to disclose more information about takeovers without betraying commercial secrets. The bill also allows the government to compel would-be foreign acquirers to put up bonds to backstop their commitments to create jobs or invest in Canada. Continue Reading →