Foreign ownership of companies of Canada

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Foreign ownership of companies of Canada pertains to the majority-ownership of Canadian-based assets (including businesses and subsidiaries) by non-Canadian individuals or companies, as well as to companies that are effectively owned or controlled, directly or indirectly, by non-Canadians. "Non-Canadian," for all intents and purposes, refers to entities based outside of Canada and to those who are not Canadian citizens or qualified permanent residents.[1]

Foreign ownership (or 'foreign affiliates') of Canadian companies has long been a controversial political issue in Canada . Concerns regarding the issue generally regard ownership of previously 'Canadian' assets by foreign entities, though the exact definition of 'foreign-owned' is subject of debate.[citation needed]

Foreign majority-owned affiliates contribute significantly to the economy of Canada. In 2016, foreign affiliates accounted for 14% of Canada's gross domestic product and employed 12% of workers.[2]

## Contents

* 1 Overview
* 1.1 Statistics
* 2 Existing foreign-owned companies in Canada
* 2.1 Banks
* 2.2 Gaming companies
* 2.3 Formerly foreign-owned
* 3 Former Canadian companies acquired by foreign owners
* 4 Rules and regulations
* 5 See also
* 6 References
* 7 External links

## Overview

Historically, foreign ownership was a political issue in Canada in the late 1960s and early 1970s, when it was believed by some that U.S. investment had reached new heights (though its levels had actually remained stable for decades), and then in the 1980s, during debates over the Free Trade Agreement.[citation needed]

However, the situation has changed, since in the interim period, Canada itself became a major investor and owner of foreign corporations. Since the 1980s, Canada's levels of investment and ownership in foreign companies have been larger than foreign investment and ownership in Canada. In some smaller countries, such as Montenegro, Canadian investment is sizable enough to make up a major portion of the economy. In Northern Ireland, for example, Canada is the largest foreign investor. By becoming foreign owners themselves, Canadians have become far less politically concerned about investment within Canada.[citation needed]

Of note is that Canada's largest companies by value, and largest employers, tend to be foreign-owned in a way that is more typical of a developing nation than a G8 member. The best example is the automotive sector, one of Canada's most important industries. It is dominated by American, German, and Japanese automotive giants. Although this situation is not unique to Canada in the global context, it is unique among G8 nations, and many other relatively small nations also have national automotive companies.[citation needed]

In 2004, foreign-controlled corporations accounted for 21.9% of assets held in Canada, and 30.0% of operating revenues yet comprised less than 1% (approx. 8,000) of the total 1.3 million corporations in Canada. Assets of foreign-controlled corporations rose 8.3% to $1.1 trillion in 2004, while those of Canadian-controlled corporations rose 8.9% to $3.9 trillion. All in all, foreign-controlled profits soared to a record $68 billion that year, up 21.7% from 2003. Also that year, foreign-controlled corporations operating revenues in Canada averaged $96 million, compared with less than $2 million for their Canadian-controlled counterparts.

In 2006, 34 Canadian companies were purchased by foreign interests worth $62 billion, nearly 4% of Canada's market value.

### Statistics

In 2016, foreign affiliates accounted for 14% of Canada's gross domestic product and employed 12% of workers. That year, foreign affiliates in the manufacturing sector accounted for 41% of the value added of foreign multinationals operating in Canada, an increase from 38% in 2010.[2]

Value added by foreign majority-owned organizations, by sector[3] Sector  | Value added (CA$billion)

|

2010  | 2014  | 2016
Mining, quarrying, and oil and gas extraction  | 36.9  | 38.4  | 21.1
Manufacturing - total  | 85.5  | 105.3  | 108.6
| Transportation equipment manufacturing  | 12.8  | 18.5  | 21.6
Chemical manufacturing | 9.2  | 13.3  | 15.4
Petroleum and coal product manufacturing  | 10.2  | 14.7  | 7.7
Other manufacturing  | 53.3  | 58.8  | 63.8
Services - total  | 94.3  | 117.8  | 125.1
| Wholesale trade | 25.1  | 34.4  | 36.8
Professional, scientific, and technical services  | 12.5  | 19.9  | 18.9
Retail trade  | 14.2  | 16.0  | 18.4
Finance and insurance  | 14.2  | 14.4  | 14.9
Others  | 28.3  | 33.3  | 36.1
All sectors - total | 224.8 | 275.5 | 267.1

## Existing foreign-owned companies in Canada

See also: Branch plant economy

This list is incomplete; you can help by expanding it.

Company  | Foreign owner(s)  | Origin of foreign owner  | Notes

|
|
|

500px | Visual China Group  | China |
Aeryon Labs | FLIR Systems  | United States |
AltaLink  | Berkshire Hathaway Energy | United States | one of Canada's largest electricity transmission companies
Asia Pacific Marine Container Lines (Asia Pacific Group Canada)  | Leung Maritime Group  | China (Hong Kong)  | one of Canada's largest cargo transport companies
Aviva Canada  | Aviva | United Kingdom |
BP Canada  | BP | United Kingdom |
Cargill Canada  | Cargill  | United States (Minnesota)  |
Corel | KKR | United States | a software and programming company, taken over by Vector Capital in August 2003, and acquired by Kohlberg in 2019.[4]
Costco Wholesale Canada  | Costco  | United States (Washington (state) )  | Costo's Canadian operations are the 7th-largest private company in Canada as of 2006.[citation needed]
Direct Energy  | NRG Energy | United States |
Dofasco  | Arcelor  | Luxembourg  | Canada's largest steel maker; acquired by Arcelor in January 2006.
Entertainment One (eOne)  | Hasbro | United States |
Ford Motor Company of Canada  | Ford Motor Company | United States |
Four Seasons Hotels & Resorts  | Cascade Investment and

Kingdom Holding Company

| United States and Saudi Arabia  |
General Electric Canada (formerly Canadian General Electric)  | General Electric | United States | a wholly-owned unit of General Electric
General Motors Canada  | General Motors | United States (Michigan)  | Canada's largest automotive manufacturer. General Motors is its indirect parent; it is Canadian-owned according to Ontario Superior Court documents.[citation needed] This also includes CAMI Automotive, an assembly plant wholly-owned by GM Canada.
Gulf Canada  | Conoco  | United States | Gulf Canada had formerly been part of U.S.-based Gulf Oil, later becoming independent. It was then purchased by Conoco in a deal worth $6.7 billion in 2002.[5][6][7]
Honda Canada Inc.  | Honda | Japan | including Honda of Canada Manufacturing
IBM Canada  | IBM | United States |
Imperial Oil  | ExxonMobil | United States |
Imperial Tobacco Canada  | British American Tobacco | United Kingdom |
Kia Canada Inc.  | Kia Motors | South Korea |
Kobo Inc. | Rakuten | Japan |
Labatt Brewing Company  | Anheuser-Busch InBev | Belgium  | Labatt was purchased by Belgian brewer Interbrew in 1995, and was eventually absorbed into AB InBev.
Lockheed Martin Canada  | Lockheed Martin | United States |
Lorex  | Dahua Technology  | China | Lorex, a distributor of security systems founded in 1991, was acquired by Dahua in 2018.
Mars Canada  | Mars, Inc.  | United States |
Masonite  | KKR | United States |
McDonald's Canada  | McDonald's | United States |
Mega Brands  | Mattel | United States |
Mercedes-Benz Canada  | Mercedes-Benz | Germany |
Mitsui and Company  | Mitsui  | Japan |
Molson Brewery  | Molson Coors | United States |
Moores  | Tailored Brands | United States |
CNOOC Petroleum North America  | China National Offshore Oil Corporation  | China | Nexen Inc. was one of two Canadian oil and gas companies that the Harper government controversially approved the sale of to foreign state-owned enterprises in 2012; though it stated that future takeovers by SOEs would face new rules, especially in the energy sector. Nexen became a wholly-owned subsidiary of CNOOC on 25 February 2013.
Nissan Canada  | Nissan Motors  | Japan |
Parmalat Canada  | Parmalat  | Italy  | Parlamat Canada is best known for owning the Black Diamond Cheese brand.
PetroKazakhstan  | PetroChina (China National Petroleum Corp)  | China | PetroKazakhstan is a Calgary-based company exploring in Central Asia. It was purchased by the China National Petroleum Corporation in 2005, and transferred to its subsidiary PetroChina.
Pratt & Whitney Canada  | United Technologies | United States |
Petronas Canada  | Petronas  | Malaysia  | Progress Energy Resources was one of two Canadian oil and gas companies that the Harper government controversially approved the sale of to foreign state-owned enterprises in 2012; though it stated that future takeovers by SOEs would face new rules, especially in the energy sector.
Rio Tinto Alcan  | Rio Tinto  | Australia / United Kingdom | Canadian manufacturer Alcan was purchased by Rio Tinto in 2007 and merged with Rio Tinto's Canadian division, becoming Rio Tinto Alcan.
Shell Canada  | Shell | England |
Sleeman Breweries  | Sapporo Breweries  | Japan |
Sony Canada  | Sony Corp | Japan |
Staples Canada  | Sycamore Partners  | United States |
Stelco  | Bedrock Industries  | United States | Stelco was Canada's last major independent steel producer. It was taken over by United States Steel in August 2007, before being acquired by Bedrock in 2016.
Toyota Canada Inc. | Toyota | Japan | including Toyota Motor Manufacturing Canada
Toys "R" Us Canada  | Toys "R" Us  | United States |
Ultramar  | Valero Energy  | United States |
Univar Canada  | Univar Solutions | United States |
Wal-Mart Canada  | Walmart Inc. | United States | wholly-owned by Walmart
Warner Music Canada  | Warner Music Group  | United States |
Waste Connections of Canada  | Waste Connections | United States | majority shares are owned by Waste Connections
Wattpad | Naver Corporation  | South Korea |

### Banks

* AMEX Bank of Canada — American Express (US)
* Citibank Canada — Citigroup (US)
* Habib Canadian Bank — Habib Bank AG Zurich (Switzerland)
* HSBC Bank Canada — HSBC (UK)
* ICICI Bank Canada — ICICI Bank (India)
* Shinhan Bank Canada — Shinhan Bank Korea (South Korea)
* KEB Hana Bank Canada — Hana Financial Group (South Korea)
* Sumitomo Mitsui Banking Corporation of Canada — Sumitomo Mitsui Banking Corp. (Japan)

### Gaming companies

Company  | Foreign owner(s)  | Origin of foreign owner

|
|

HB Studios | 2K | United States
Beenox | Activision | United States
Radical Entertainment (defunct)
Capcom Vancouver | Capcom | Japan
Big Blue Bubble | Enad Global 7  | Sweden
Piranha Games
BioWare  | Electronic Arts | United States
EA Black Box
EA Montreal
EA Vancouver
Motive Studios
Ludia | Jam City | United States
Digital Extremes | Leyou | China
FUN Technologies  | Liberty Media  | United States
Next Level Games | Nintendo | Japan
Rockstar Toronto | Rockstar Games | United States
Rockstar Vancouver
Relic Entertainment | Sega Europe (Sega)  | Japan
Eidos-Montréal | Square Enix | Japan
Square Enix Montreal
Klei Entertainment | Tencent | China
Ubisoft Montreal | Ubisoft | France
Ubisoft Quebec
Ubisoft Saguenay
Ubisoft Toronto
WB Games Montréal | Warner Bros. Interactive Entertainment | United States

### Formerly foreign-owned

Canadian companies that were once foreign-owned but are currently owned by a Canadian company:

* CCM Hockey — acquired by Reebok in 2004, and now owned by Birch Hill Equity Partners.
* Cirque du Soleil — Before being acquired in 2020 by Canada's Capital Catalyst Group, Cirque's three shareholders were U.S.-based TPG Capital, Chinese-based Fosun, and Canadian-based Caisse de depot et placement du Quebec.[8]
* FortisBC (formerly BC Gas, a public utility company) — Then known as Terasen Inc., it was sold to American-owned energy giant Kinder Morgan for $6.9 billion. The deal was approved in 2005 by the B.C. Utilities Commission despite 8,000 letters of protest. Terasen was subsequently sold to Newfoundland-based Fortis Inc. in 2007.
* Tangerine Bank (formerly ING Bank of Canada) — formed by the purchase of several small Canadian companies by the Dutch ING Group. It has been owned since 2012 by Scotiabank (formally the Bank of Nova Scotia).
* Tim Hortons — sold to U.S.-based Wendy's International in 1995, and later to sold to the public as an IPO in 2005. It is now owned by Toronto-based Restaurant Brands International, a Canadian-American fast food holding company.

## Former Canadian companies acquired by foreign owners

Company  | Foreign owner  | Origin of foreign owner  | Notes

|
|
|

Addax Petroleum  | Sinopec | China | Addax was one of 9 Canadian Fortune 2000 oil and gas companies in 2009. It was acquired by Sinopec for C$8.27 billion in June 2009 and approved by the Chinese government on August 12 that year.
ATI Technologies | Advanced Micro Devices | United States | ATI was Canada's graphics chip maker, acquired by Advanced Micro Devices in July 2006.
Canadian Pacific Hotels  | Colony Capital, LLC and Kingdom Holding Co.  | United States and Saudi Arabia  | Canadian Pacific Hotels was the owner of many of Canada's most historic hotel properties (operating under the name Fairmont Hotels and Resorts since 1999). It was sold to California-based Colony Capital, LLC and Saudi Arabia-based Kingdom Holding Company for $3.9 billion, in January 2006.
CP Ships Ltd.  | TUI AG  | Germany | Merged with TUI AG, the parent company of Hapag-Lloyd Container Line, after in an all-cash transaction worth $2.3 billion US in 2005.
Creo | Eastman Kodak  | United States | Creo was a world leader in digital printing software.
Eaton's  | Sears  | United States | Eaton's was, at one time, Canada's largest retailer, with a history going back to 1869. It was purchased by Sears in 1999 and closed in 2000.[citation needed]
Falconbridge Ltd.  | Xstrata  | Switzerland |
Future Shop  | Best Buy | United States |
ID Biomedical  | GlaxoSmithKline | United Kingdom | ID Biomedical, a Canadian vaccine maker, was acquired by pharmaceutical giant GlaxoSmithKline for $1.8 billion in 2005.[9]
JDS Fitel  | Uniphase  | United States | In 1999, JDS Fitel announced a $8.9-billion merger with Uniphase to form JDS Uniphase. Company headquarters moved from Ottawa to San Jose.[citation needed]
MacMillan Bloedel  | Weyerhaeuser | United States | B.C. forestry giant acquired by Weyerhaeuser for US$2.45 billion in 1999
Moore Wallace  | R.R. Donnelley and Sons | United States | Moore Wallace sold to R.R. Donnelley and Sons for $4.9 billion. In February 2004, R.R. Donnelley merged with Moore Wallace, keeping the name R.R. Donnelley as the name of the combined company.
Noranda  | Xstrata  | Switzerland | Noranda purchased by mining company Xstrata in 2006. It had earlier been a target of state-owned China Metals Corp., but had backed out in 2005 amid public concern in Canada of Chinese state control of such a major company.[citation needed]
Pixar Canada  | Pixar  | United States |
Seagram  | Vivendi Universal and Pernod Ricard | France | distillery and entertainment conglomerate; sold to Vivendi Universal and Pernod Ricard in 2000
Sears Canada  | Sears Holdings Corp.  | United States | Sears Canada was one of the largest retailers (created by buying old Simpson's stores).
Vincor International Ltd  | Constellation Brands | United States | Vincor, Canada's top wine maker and distributor, was purchased for $1.4 billion by Constellation.
ZENON Environmental  | GE Water & Process Technologies (General Electric)  | United States | ZENON was a technology company originating in Hamilton, Ontario.

Existing companies formerly based in Canada

* Bauer, Cooper, and Hespeler, historic hockey-equipment manufacturers, were collectively bought by U.S.-based Nike in 1994.

## Rules and regulations

"Non-Canadian," for all intents and purposes, refers to entities based outside of Canada and to individuals who are not Canadian citizens or qualified permanent residents.[1]

A business undertaking is considered to be 'Canadian' if it is Canadian-controlled, which generally mean:[1]

* if one Canadian, or two or more Canadian members of a voting group, owns a majority of the voting interests of an entity, the entity is Canadian-controlled.
* if one non-Canadian, or two or more non-Canadian members of a voting group, owns a majority of the voting interests of an entity, the entity is not Canadian-controlled.

In regards to public companies, which are not controlled through the ownership of voting shares, the corporation is considered to be Canadian-controlled if at least two-thirds of the board of directors is Canadian.[1]

Large foreign direct investments in Canada are governed under the federal Investment Canada Act (ICA).[10] This act is primarily administered by Innovation, Science and Economic Development Canada, though defined "cultural businesses" are administered by the Department of Canadian Heritage.[1]

Foreign corporations often incorporate branches or special-purpose subsidiaries within Canada in order to facilitate business and control their investments.[11] Business profits earned in Canada by such a branch will be subject to regular federal and provincial corporate Income Taxes. An additional Federal Branch Tax is also applied on profits not reinvested in Canada. A tax treaty may provide for a reduced rate or exemption threshold for the Federal Branch Tax.[11]

Various federal and provincial statutes place additional restrictions on foreign ownership in specific industries. Federal acts include:[12]

* Bank Act — provides that no person may own and control more than 10% of the shares of a Schedule I bank.
* Broadcasting Act — bans broadcasting licenses from being issued to non-Canadians or to companies that are effectively owned or controlled, directly or indirectly, by non-Canadians.
* Telecommunications Act — restricts foreign ownership and control to 20% of the voting shares of a telecommunications common carrier.
* Insurance Companies Act — provides that no person may own and control more than 10% of the shares of a Canadian-owned life insurance company. (Manitoba legislation also places restrictions on foreign investment in the insurance industry.)

The New Brunswick Business Corporations Act, the Nova Scotia Companies Act, the Quebec Business Corporations Act, and the British Columbia Business Corporations Act make no stipulations that resident Canadians be directors.[13] New Brunswick provides that Extra Provincial Corporations need only have an "attorney for service" resident in that province.[14]

Unlimited liability corporations can exist in Alberta, British Columbia, or Nova Scotia.[13] This form is particularly convenient where the parties are well-established and in no danger of insolvency. Alberta requires the derisory fee of CA$100 to establish this form.[13] In most other provinces, the legislation is significantly more restrictive.

## See also

* Canadian nationalism
* Continentalism
* Foreign Investment Review Agency
* Economic nationalism

## References

1. ↑ 1.0 1.1 1.2 1.3 1.4 "Guide to Doing Business in Canada: Regulation of Foreign Investment". Ottawa, Ontario: Gowling WLG. 21 October 2022. https://gowlingwlg.com/en/insights-resources/guides/2021/doing-business-in-canada-foreign-investments/.
2. ↑ 2.0 2.1 Government of Canada, Statistics Canada (2019-06-25). "The Daily — Study: Foreign-owned Affiliates in Canada: Trends across Major Sectors". https://www150.statcan.gc.ca/n1/daily-quotidien/190625/dq190625d-eng.htm.
3. ↑ Government of Canada, Statistics Canada (2019-06-25). "Foreign-owned Affiliates in Canada: Trends across Major Sectors". https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019012-eng.htm.
4. ↑ "KKR confirms it has acquired Canadian software company Corel, reportedly for over $1B". TechCrunch. Retrieved 2021 November 14.
5. ↑ Conoco Reaches Deal to Buy Gulf Canada for $4.33 Billion, Wall Street Journal, May 30, 2001. Retrieved 2015-04-07
6. ↑ Canadian Corporate Reports, McGill Digital Archive Retrieved 2015-04-07.
7. ↑ Conoco's takeover of Gulf Canada leads latest merger wave, Oil and Gas Journal, June 4, 2001. Retrieved 2015-04-07
8. ↑ "Cirque du Soleil creditors poised to take over company, leaving Quebec without a stake | Globalnews.ca" (in en-US). https://globalnews.ca/news/7286226/cirque-du-soleil-takeover-quebec-no-stake/.
9. ↑ "GlaxoSmithKline buys Vancouver's ID Biomedical for $1.7 billion | CBC News". https://www.cbc.ca/news/business/glaxosmithkline-buys-vancouver-s-id-biomedical-for-1-7-billion-1.534195.
10. ↑ "Canada Toughens National Security Reviews of Foreign Investments | Cassels.com" (in en-US). https://cassels.com/insights/canada-toughens-national-security-reviews-of-foreign-investments/.
11. ↑ 11.0 11.1 "Foreign Companies Doing Business in Canada – Ontario". Vaughan, Ontario: Fazzari+Partners LLP Chartered Professional Accountants. https://fazzaripartners.com/wp-content/uploads/2019/05/MGI-DBG-Canada.pdf.
12. ↑ "Sectoral Limitations on Foreign Ownership of Canadian Businesses | Manitoba's Strategic Advantages | Economic Development and Jobs | Province of Manitoba" (in en). https://www.manitoba.ca/jec/mbadvantage/businessforeignownership.html.
13. ↑ 13.0 13.1 13.2 ""Doing business in Canada: A Practical Guide"". http://www.casselsbrock.com/files/file/CasselsBrock_DoingBusinessInCanada_June2011(1).pdf.
14. ↑ "Business Corporations Act". Article SNB 1981, c B-9.1, Act of 16 June 2023. Legislature of New Brunswick. https://canlii.ca/t/563jl. Retrieved 11 October 2023. Act of 16+June+2023&rft.pub=Legislature+of+New+Brunswick&rft_id=https://canlii.ca/t/563jl&rfr_id=info:sid/en.wikibooks.org:Company:Foreign_ownership_of_companies_of_Canada">

## External links

* The Canadian Encyclopedia
* CBC News - Mergers and Acquisitions
* Statistics Canada Nov 23, 2012

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