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Chris Hersh Discusses Encana’s Move to the US with The Globe and Mail

11/06/2019

Chris Hersh has been quoted in the article “Encana Move to U.S. Means Foreign Takeover Would No Longer Require Canadian Approval,” published by The Globe and Mail.

Writes Jim Urquhart: “As a side effect of [Encana’s] planned move to the U.S., if the company did attract a foreign buyer, lawyers say it would not face a review under the Investment Canada Act (ICA), which requires proof that deals for companies worth more than about $1 billion represent a ‘net benefit’ to Canada. It is ultimately the federal minister of Innovation, Science and Economic Development (ISED) who must grant approval under the ICA.”

Says Chris: “To satisfy the minister of ISED that the deal is a net benefit, the investor typically has to give significant undertakings regarding how they plan to operate the Canadian business on a go-forward basis…. Once the Investment Canada Act no longer applies to a transaction, the government certainly loses the ability to get those net benefit undertakings.”

Read the full article here. (Subscription required.)

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