The general effect of the bill is to set up a review process for foreign corporations seeking to buy out or take over existing Canadian businesses above a specified size. in order to ensure that the purchase will result in significant benefit to Canada. As the Minister put it to the House of Commons: In general terms the purpose will be to examine proposals for takeovers of Canadian businesses. to approve those that. on balance. will be of significant benefit to Canada. to negotiate with the proposed acquirer in those cases where he can reasonably be expected to make a greater contribution to Canadian development. and to refuse to allow those takeovers that would not bring sig5iifcant benefit to Canada. The Act will apply to a takeover of a Canadian business by other than a Canadian citizen ordinarily resident In Canada. an Immigrant who has lived there six years or less. or by firms which they control. In other words. a takeover by a foreign investor of an CXIX2128Part 26 already foreign controlled firm will be subject to review. Even though the enterprise will still be foreign controlled if a takeover eventuates. the government will at least have had the opportunity of preventing new restriction on the operation of the firm involved. and of negotiating terms more commensurate with Canadian interests.
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Immigrant