Survey of Foreign Merger and Acquisition Law : Canada the Foreign Investment Review Act and the Combines Investigation Act

Due to the proximity of Canada to the United States, the cultural and business similarities, and the long and generally favorable business relations between the countries, many American companies seriously consider acquiring financially attractive Canadian companies. However, recently these relations have deteriorated. In an effort to become less dependent upon American business interests, to insure sufficient benefits to Canadians, to compensate them for the depletion of their natural resources, and to generally discriminate in favor of Canadian Citizens, the federal government of Canada has developed a Canadian national energy program, adopted a Foreign Investment Review Act and established various programs to carry out its new economic development policies. American interests should also be aware of the Combines Investigation Act which regulates mergers, monopolies and trusts in Canada. This survey of merger and acquisition in Canada is divided into two parts. Part one will concentrate on the Foreign Investment Review Act and current Canadian cases relating to the Act. Part two will consist of a general survey of the Combines Act and brief reference to recent Combines Act cases, and highlight the more important aspects of the current Combines Investigation Act