Pm changes rules on takeovers by China state firms
The state-owned firms that acquire Canadian resource companies must show that they operate on a “commercial” basis, Prime Minister Stephen Harper said Wednesday.
Minmetals Resources Ltd., a metals giant controlled by the Chinese government, has offered $6.5 billion to acquire Equinox Minerals, a copper-mining firm with dual head offices in Canada and Australia.
The deal is expected to be reviewed under Canada’s foreign investment law, which requires that foreign takeovers worth more than $312 million represent a “net benefit” to Canada.
Harper declined to comment on any specific deals. But he said any state-owned enterprises must demonstrate that they operate on a “commercial” basis.
“We have changed some of our rules, so that we can assess whether, when a state-owned company is involved in a takeover, whether it is doing so according to commercial criteria,” the Conservative leader told reporters.