Invest in Canada

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Invest in Canada (IIC)
Government of Canada
HeadquartersOttawa
Productsinward investment support
Websiteinvestcanada.ca

Invest in Canada is the Government of Canada organization that promotes and attracts foreign direct investment into Canada. As a bureau in the Department of Foreign Affairs, Trade and Development Canada, Invest in Canada assists companies planning to invest in Canada or to expand their Canadian operations. The department was created in 1985 by the Investment Canada Act. The Harper government used to limit foreign investment to no more than 50% share,[1] through a policy designed by Nigel S. Wright during his time at the PMO.

Foreign direct investment (FDI) by country[2] and by industry[3] are tracked by Statistics Canada; the total in 2012 of FDI was CAD$634bn.[2] New FDI inflow to Canada in 2011 was CAD$40.8bn.[4] Canada was host to CAD$33bn in state-owned enterprise investment over the period between 2005 and 2012.[5] Over the same period, the net FDI increased by CAD$236.1bn, 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 CAD$1bn 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 CAD$330mn 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.[6] Industry Canada provides a helpful webpage with this information, and explains that WTO members are eligible for CAD$344mn review-free investment as of 12 January 2013.[7] The WTO maintains a membership list.[8] The information on the WTO "amount" permitted by 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.[9] 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.[10]

Services[edit]

Invest in Canada can guide companies through every step of the investment process, from the exploratory phase through to site selection and follow up: it will provide companies with a wealth of information about doing business in Canada and introduce them to specialists who offer one-on-one assistance customized to meet particular needs.

Canada has a global network of investment and trade professionals present in more than 150 cities worldwide to assist companies in making Canada their next investment destination. This global network can help if a company is considering their own Canadian operation, working with a Canadian partner, or gaining a Canadian base for access to North American markets.

Investment and Trade Professionals[edit]

Canada's investment professionals can provide companies with strategic intelligence and put them in touch with the right contacts in Canada.

Services Available to Companies[edit]

Invest in Canada offers a wide range of services. These include:

  • Strategic market intelligence on specific sectors in the context of the Canadian and North American marketplace
  • Referrals to a variety of contacts with private-sector industry associations and professionals such as bankers, lawyers, accounting firms, and information specialists
  • Information and advice on how to set up a business in Canada, taxation, R&D incentives, regulations and financial and non-financial government programs specific to an industry sector
  • Facilitation of site visits to support companies in the identification of a strategic location for their investments and enhance their business opportunities/strategic alliances in a welcoming environment
  • Assistance in developing a business case for investment decision.

Bonds[edit]

On 5 November 2013, British Columbia finance minister Mike de Jong reported a successful placement of Chinese RMB$2.5bn in dim sum bonds.[11] The issue was five times oversubscribed.

Contacting Invest in Canada[edit]

Invest in Canada's global network will show companies why Canada is an ideal strategic choice for growth. By contacting the nearest Canadian Embassy, High Commission, or Consulate, a company can get information and assistance they need to make the right decisions. It is unclear who holds the reins at Investment Canada; a total of five ministers and four parliamentary secretaries are listed on its webpage.[12]

Investments[edit]

2004[edit]

2005[edit]

  • On 21 August 2005,TUI AG unit Hapag-Lloyd agreed to acquire CP Ships Limited, including its Port of Montreal transshipment wharf, for 1.7bn (US$2bn) in cash. It has now made the combined fleet the fifth largest by capacity in the worldwide container shipping market.[15] In 2006 the CP Ships name disappeared for good. TUI AG plans to divest of Hapag-Lloyd, which is a 37% German SOE.

2006[edit]

  • 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 CAD$1.5mn 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.[16][17]
  • In January 2006, ArcelorMittal took over Dofasco, for CAD$5.5bn.[18]
  • In August 2006, Xstrata (subsequently delisted) CAD$16bn purchased for US$22.5bn Falconbridge Ltd. (subsequently delisted)[19]
  • In October 2006, Vale purchased 86% of INCO (subsequently delisted) for CAD$15bn[20]

2007[edit]

2008[edit]

2009[edit]

2010[edit]

2011[edit]

2012[edit]

2013[edit]

2014[edit]

  • On 31 January 2014, 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 2014, Statoil postponed its investment in the "Corner" project.[65]

  • On 12 February 2014, 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[edit]

  • On 16 April 2015 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[edit]

  • Thalmic Labs, wearable computing start up invested USD 158 Million
  • Real Matters, a property valuation services received USD 100 Million
  • Buildscale, a video marketing platform received USD 49 Million[74]
  • BlueRock Therapeutics, operating in regenerative medicine received USD 295 Million by Versant Ventures
  • Dal Cor Pharmaceuticals received USD126 Million by Sanderling Ventures
  • Zymeworks, operating in antibody and Protein Therapeutics received USD 87.8 from BDC Capital[75]

2017[edit]

  • 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 2017, Teutech Industries, a Guelph, Ontario, based manufacturer of precision machined and heat treated powertrain components, was acquired by Indian auto component manufacturer The 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]
  • In June 2017, Montreal, Quebec-based Element AI raised US $102 million in a funding series led by San Francisco-based Data Collective[79]

External links[edit]

References[edit]

  1. ^ "Alberta courts China as ‘key’ energy market in framework deal" 18 Oct 2013 Financial Post
  2. ^ a b Statistics Canada Foreign Investment by Country
  3. ^ FDI by industry (NAICS)
  4. ^ FDI inflow tracked by Government of Canada
  5. ^ Globe 28 Oct 2013 "Canada's slow oil, gas infrastructure development worry Chinese, minister says"
  6. ^ Text of the "World Trade Organization Agreement Implementation Act", SC 1994, c 47
  7. ^ "Thresholds for Review", Industry Canada
  8. ^ WTO membership list
  9. ^ "Ottawa moves to limit foreign investment reviews" CBC 25 May 2012
  10. ^ "Harper says clarity not needed on foreign takeover rules " G+M 8 Nov 2013
  11. ^ "Canadian Province Issues Offshore Yuan-Denominated Bonds" 5 Nov 2013
  12. ^ international.gc.ca: "Our Ministers"
  13. ^ usatoday.com: "Smucker buys International Multifoods for $500M" 8 Mar 2004
  14. ^ kornferry.com recruitment ad for "Vice-President, Supply Chain" of Smucker's
  15. ^ TUI press release about CP Ships
  16. ^ "Financial Post: "Lessons of oil-sands tragedy" (D. Francis) date unknown". Archived from the original on 2014-02-02. Retrieved 2014-01-20.
  17. ^ G+M: "Suncor staffer dies at oil-sands project site" (Tait) 19 Jan 2014
  18. ^ "Dofasco recommends acceptance of Arcelor bid". CBC News. 2006-01-24.
  19. ^ "Financial Post: "How Xstrata won Falconbridge"". Archived from the original on 2013-10-03. Retrieved 2013-09-27.
  20. ^ Bloomberg: "Vale Buys Control of Canadian Nickel Miner Inco" 24 Oct 2006
  21. ^ "Abitibi, Bowater merging to create forestry giant". CBC News. 2007-01-30. Retrieved 2009-04-16.
  22. ^ "The company known today as “IPSCO Inc.,” one of the world’s leading producers of steel plate and pipe, began its corporate life in Regina, Saskatchewan on July 13, 1956, as “Prairie Pipe Manufacturing Company Ltd.”..."
  23. ^ G+M 30 Oct 2013 "U.S. Steel ends an era in Hamilton"
  24. ^ cbc.ca: "Jam maker E.D. Smith relishes takeover by U.S. pickle giant" 25 Jun 2007
  25. ^ "Rio Tinto, Alcan reach US$38.1-billion merger deal". CTV.ca. 2007. Retrieved 8 August 2007.
  26. ^ G+M: "Dented by aluminum, Rio Tinto aims to unload Iron Ore Co." 1 Mar 2013
  27. ^ a b WSJ: "Chinese steel giant eyes Rio Tinto assets" 27 Sep 2013
  28. ^ G+M "The man behind the Teck-CIC deal" 3 Jul 2009
  29. ^ Nova Chemicals: "Company History and Development"
  30. ^ "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.
  31. ^ "ConocoPhillips Sells Syncrude Stake to Sinopec". Press Release. RigZone. 25 June 2010. Retrieved 25 June 2010.
  32. ^ Report on Business Magazine, Nov 2013
  33. ^ "Merit Mining Corp. Signs Subscription Agreement with Hong Kong Huakan Investment Co., Limited" 10 Apr 2010, Huakan press release
  34. ^ "Merit Mining Corp. Changes Name" 15 Dec 2010 Huakan press release
  35. ^ Bloomberg Businessweek "Company Overview of Hong Kong Huakan Investment Co., Ltd"
  36. ^ "HONG KONG HUAKAN INVESTMENT CO., LIMITED; Local Company" companies-hongkong.com
  37. ^ [ca.hotstocked.com/docs/show/huakan_international.../ew051410.pdf "EARLY WARNING REPORT PURSUANT TO NATIONAL INSTRUMENT 62-103"]
  38. ^ Offshore Technology: "Mizzen Prospect"
  39. ^ G+M "Husky, Statoil laud big offshore Canada oil find " 26 Sep 2013
  40. ^ Rebecca Penty (November 1, 2012). "Husky Profit Rises on Refining Margin as Production Falls". Bloomberg.
  41. ^ investnorthwestbc.ca: "Arctos Anthracite Project (formerly Mount Klappan Anthracite Metallurgical Coal Project)"
  42. ^ "About HD Mining International Ltd" company webpage
  43. ^ "B.C. coal mine has close ties to Chinese government, steelworkers say" 19 Dec 2012 Globe and Mail
  44. ^ "TransCanada Corp And Phoenix Energy Holdings Ltd. Form Joint Venture To Develop Grand Rapids Pipeline System" 29 Oct 2012
  45. ^ "Athabasca shares plummet as First Nation wins leave to appeal" G+M 18 Oct 2013
  46. ^ Financial Post: "Petronas completes $6-billion Progress Energy acquisition after deal gets Ottawa’s approval" 12 Dec 2012
  47. ^ marketwatch.com 13 December 2012 "ArcelorMittal and Nunavut Iron Ore become equal partners in Baffinland"
  48. ^ bloomberg.com: "ARMZ Seeks Rest of Uranium One for $1.3 Billion; Won’t Raise Bid " 14 Jan 2013
  49. ^ FP: "Uranium One bought by top Russian shareholder ARMZ for $1.3-billion; Russia's ARMZ snaps up rest of Uranium One for $1.3-billion" 14 Jan 2013
  50. ^ "AltaGas Ltd. and Idemitsu Kosan Co., Ltd. Form Partnership to Pursue Opportunities to Export Energy From Canada" 29 Jan 2013
  51. ^ a b "INFORMATION BULLETIN: Triton LNG joins list of B.C. proposals" gov.bc.ca
  52. ^ a b 13 Dec 2012, Financial Post: "Encana, PetroChina form joint venture to develop natural gas in Alberta"
  53. ^ "Ottawa approves Exxon Mobil’s $3.1-billion bid for Celtic Exploration " 20 Feb 2013
  54. ^ albertaoilmagazine.com: "ExxonMobil’s takeover of Celtic Exploration closes"
  55. ^ Reuters: "CNOOC closes $15.1 billion acquisition of Canada's Nexen" 25 Feb 2013
  56. ^ a b G+M: "Heinz to close Ontario factory, trim 740 jobs" 14 Nov 2013
  57. ^ "Berkshire Hathaway, 3G Buying Heinz for $23.3 Billion". Cnbc.com. November 21, 2012. Retrieved 2013-02-14.
  58. ^ cbc.ca "McDonald's to stop using Heinz ketchup at its restaurants; 34,000 stores worldwide affected by what some call 'corporate battle of the century'" (AP) 28 Oct 2013
  59. ^ "Foreign investment doesn’t need ‘absolute clarity': Harper" Toronto Star, 8 Nov 2013
  60. ^ 8 Nov 2013, Bloomberg "Talisman Sells Montney to Petronas for $1.4 Billion"
  61. ^ "Petronas moves to secure Asian market with natural gas megaproject" 17 Nov 2013 G+M
  62. ^ "Novelis sale to Reynolds could lead to job cuts" G+M 16 Dec 2013
  63. ^ "Major shareholder calls for board shakeup as Sherritt exits coal" RACHELLE YOUNGLAI - MINING REPORTER The Globe and Mail
  64. ^ G+M "Statoil, PTTEP deal to test tighter oil sands rules" 31 Jan 2013
  65. ^ a b Dan Healing (9 September 2014). "Statoil puts oilsands expansion on hold". Calgary Herald.
  66. ^ a b c G+M: "Mexico’s Grupo Bimbo buying Canada Bread for $1.83-billion" 12 Feb 2014
  67. ^ Repsol to buy Talisman Energy for hefty premium, 16 Dec 2014
  68. ^ "cbc.ca Business News>Talisman agrees to $15.1B Cdn takeover by Spain's Repsol".
  69. ^ cbc.ca: "The Horizon Oil Sands site" 7 Jan 2011
  70. ^ ey.com: "Exploring the top 10 opportunities and risks in Canada's oil sands 2012"
  71. ^ "U.S., Saudi firms to buy former Canadian Wheat Board". The Globe and Mail. 15 April 2015. Retrieved 15 April 2015.
  72. ^ Water-poor Saudi Arabia invests in Canadian Wheat Board’s grain", 16 Apr 2015
  73. ^ globeandmail.com: "Manitoba port feels squeeze from grain industry shakeup", 28 Apr 2015
  74. ^ JLL (2016). "Technology Outlook 2016, Canada" (PDF). Jones Lang Lasalle.
  75. ^ Reuters, Thomson (2016). "Canadian Venture Capital Review Full Year 2016" (PDF). Canadian Venture Capital Review Full Year 2016.
  76. ^ "Foreign direct investment in Canada plunges to the lowest in eight years". Financial Post. 2018-03-01. Retrieved 2018-07-06.
  77. ^ Group, SKP (2017). "Investment Chronicle January – March 2017" (PDF). Investment Chronicles by SKP Group.
  78. ^ "Chinese group makes key acquisition in manufacturing". Retrieved 2018-07-06.
  79. ^ "Canada's Burgeoning Tech Sector Is Attracting More US Venture Money - Crunchbase News". Crunchbase News. Retrieved 2018-07-06.