Investment Canada Act and Competition Act Mandatory Review Thresholds For 2014

January 21, 2014

Industry Canada and the Competition Bureau have announced new thresholds for review for the year 2014.

On January 20, 2014, the Competition Bureau announced the 2014 size of transaction pre-merger notification threshold would increase to $82 million; the 2013 threshold was $80 million.  Acquisitions may be subject to mandatory pre-notification where the aggregate value of the target firm's assets in Canada, or the gross revenues from sales in or from Canada generated from those assets, exceeds the size of transaction threshold.  The size of parties threshold ($400 million), and shareholdings threshold in the case of share deals, must also be met for a mandatory notification to be required.

Similarly, Industry Canada announced the expected 2014 threshold for review for World Trade Organization member investors under the Investment Canada Act.  The 2014 threshold will be $354 million, up from $344 million in 2013.  The threshold for review for non-WTO member countries remains at $5 million for direct investments and $50 million for indirect investments.

The increases come into effect immediately following publication in the Canada Gazette, which is expected to occur January 25, 2014.

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