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Under the Investment Canada Act ("ICA"), non-Canadians who acquire control of a Canadian business that exceeds the applicable prescribed thresholds must submit an application for review and obtain ministerial approval for the acquisition on the basis that the investment is of net benefit to Canada.
These prescribed net benefit review thresholds are based on the status of the foreign investor and are adjusted annually based on changes to Canada's nominal gross domestic product. These thresholds for 2026 were published in the Canada Gazette on January 12, 2026.
For 2026, the net benefit review thresholds are as follows for direct acquisitions of non-cultural businesses:
- Trade Agreement Investor (investors from countries with whom Canada has a trade agreement) that is not a state-owned enterprise ("SOE"): $2.179 billion or more in enterprise value.
- WTO Investor (investors from World Trade Organization member countries) that is not an SOE: $1.452 billion or more in enterprise value.
- WTO investor that is an SOE: $578 million or more in asset value.
The review thresholds for acquisitions of cultural businesses by non-Canadians have not changed and remain at $5 million in asset value for direct acquisitions and $50 million in asset value for indirect acquisitions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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