Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
Issue link: https://digital.carswellmedia.com/i/1544329
www.lexpert.ca 9 Feature OVER THE past year, geopolitical instability and Canada's shifting relationships with allies and trading partners have prompted several policy changes aimed at fortifying the coun- try's economy and security. At the same time, anticipated regulations are slated to change Canada's relationship with foreign investors. Below, Lexpert talks to three mergers and acquisitions experts about the policy changes they believe will have the greatest impact on deal-making over the next year. Defence industrial strategy One of the key takeaways from Prime Minister Mark Carney's first budget last year was its major investment in defence – $81.8 billion over five years to "rebuild, rearm, and reinvest in the Canadian Armed Forces." In February, Carney's government elab- orated on its defence plans by releasing a new defence industrial strategy outlining initiatives and targets to strengthen Canada's defence capabilities over the next decade. These include directing 70 percent of defence acquisitions to Canadian firms, increasing Canada's defence exports by 50 percent, growing defence revenues for small and medi- um-sized Canadian businesses by more than $5.1 billion annually, and abiding by Feature a new "build-partner-buy" framework for defence procurement. Under this framework, Canada will build domestically to strengthen its defence capabilities and direct new defence procure- ments to Canadian firms "as a matter of policy"; partner with trusted allies in Europe, the United Kingdom, and the Indo-Pacific in cases where Canada lacks the capacity to build domestically; and buy from allies when the first two options are not feasible. The build-partner-buy framework is "really focused on Canada," says Myron "You're going to see a pipeline of M&A activity across sovereign capability areas such as aerospace, digital systems, ammunition, sensors, and infrastructure" Myron Mallia-Dare DENTONS CANADA LLP CANADA BUILDS ITS RESILIENCE SOME OF THE POLICY SHIFTS MAKING THE BIGGEST IMPACT ON CANADIAN DEAL-MAKING ARE ROOTED IN CANADA'S DETERMINATION TO FORTIFY ITS ECONOMY AND SECURITY IN THE FACE OF GEOPOLITICAL UNCERTAINTY, WRITES JESSICA MACH