Archived — Annual Report 2013–14

Statistical Information: 2013–14Footnote 3

Total Investments

In 2013–14, 11 applications for review were approved by the Minister of Industry and 655 notifications were filed with Industry Canada under the Act, compared to 18 applications approved and 664 notifications filed in 2012–13 (Figure 1 and Figure 2). There were 177 notifications filed in 2013–14 establishing new businesses in Canada, compared to 179 in 2012–13.

Review Time

On average, the time taken to review an application and for the Minister of Industry to make a net benefit determination in 2013–14 was 71.5 days.

Investment by Asset Value

The total asset value of all applications for review and notifications in 2013–14 was $53.98 billion (Figure 1 and Figure 2), compared to $56.21 billion in 2012–13, a slight decrease of 4 percent.

The total asset value of approved applications for review in 2013–14 was $15.42 billion, compared to $43.10 billion in 2012–13, a decrease of 64 percent. It should be noted that the value for 2012–13 included two large transactions: China National Offshore Oil Corporation's (CNOOC) acquisition of Nexen and the purchase of Progress Energy by Petronas. There were seven fewer reviewed investments in 2013–14 than in 2012–13. The number of reviewed investments is expected to vary from year to year.

The total asset value for notifications filed in 2013–14 was $38.56 billion, which is almost three times the 2012–13 level of $13.11 billion. The four largest notifications received in 2013–14 totalled approximately $21 billion in assets. These investments involved indirect acquisitions of Canadian businesses.

There were eight transactions subject to the Act where the Canadian business had assets of more than $1 billion, five of which were reviewable applications. The three other investments were not reviewable because an indirect investment involving an investor from a WTO member country only requires notification under the Act.

In 2013–14, the average asset value of applications for review was $1.40 billion and $58.87 million for notifications, compared to $2.39 billion and $19.75 million respectively in 2012–13. Values vary from year to year.

Figure 1: Applications

Figure 1: Applications (the long description is located after the image)
Description of Figure 1
Figure 1: Applications
Year Number of applications
(right axis)
Asset value of applications
($ billions) (left axis)
2009–10 23 30.79
2010–11 16 16.84
2011–12 15 19.14
2012–13 18 43.10
2013–14 11 15.42

Figure 2: Notifications

Figure 2: Notifications (the long description is located after the image)
Description of Figure 2
Figure 2: Notifications
Year Number of notifications
(right axis)
Asset value of notifications
($ billions) (left axis)
2009–10 414 30.07
2010–11 580 21.15
2011–12 696 15.26
2012–13 664 13.11
2013–14 655 38.56

Investment by Sector

  • Resource: 97 investments. This sector had the largest share of investments by asset value at $31.54 billion, with an average value of $325.17 million.
  • Manufacturing: 128 investments. The total asset value was $6.26 billion, with an average value of $48.91 million.
  • Wholesale and retail: 104 investments. The total asset value was $1.96 billion, with an average value of $18.82 million.
  • Business and services: 230 investments. The total asset value was $4.75 billion, with an average value of $20.66 million. This sector continued to receive the largest number of investments under the Act.
  • Other services: 107 investments. The total asset value was $9.47 billion, with an average value of $88.54 million.Footnote 4

Figure 3: Asset Value by Sector ($ billions)

Figure 3: Asset Value by Sector ($ billions) (the long description is located after the image)
Description of Figure 3
Figure 3: Asset Value by Sector ($ billions)
Year Resource Manufacturing Wholesale and retail  Business and services  Other services  Asset value total
(at top of column)
2009–10 11.56 21.33 12.75 4.37 10.85 60.86
2010–11 16.51 8.53 5.48 2.51 4.96 37.99
2011–12 17.11 5.24 1.71 4.98 5.36 34.40
2012–13 33.31 5.89 10.35 5.22 1.45 56.21
2013–14 31.54 6.26 1.96 4.75 9.47 53.98

Investment by Country or Region of Origin

In 2013–14, the United States was the number one source of investments with 350 investments totalling $18.18 billion in asset value. Investments from the United States accounted for 52.6 percent of the total number of investments and 33.7 percent of the total asset value. Investors from the European Union (EU) made 194 investments totalling $5.95 billion, which represented 29.1 percent of the total number of investments and 11.0 percent of the total asset value.

Figure 4: Investment by Country or Region of Origin

Figure 4: Investment by Country or Region of Origin (the long description is located after the image)
Description of Figure 4
Figure 4: Investment by Country or Region of Origin
Country or region of origin  Number of investments
United States 350
European Union 194
BRIC (Brazil, Russia, India and China) 32
Japan 26
Australia 6
Switzerland 15
South Korea 9
Other 34
Breakdown for European Union
France 50
Germany 26
United Kingdom 33
Luxembourg 21
Netherlands 13
Belgium 13
Italy 11
Sweden 9
Rest of European Union 18

Among the EU member states, the following had the highest level of investment:

  • United Kingdom—$3.3 billion
  • France—$1.2 billion
  • Luxembourg—$555 million
  • Sweden—$123 million
  • Netherlands—$93 million
  • Germany—$50 million
  • Italy—$22 million
  • Belgium—$8 million

The BRIC countries (Brazil, Russia, India and China) made 32 investments in 2013–14, which totalled $1.3 billion.

Other countries of note in terms of the level of investment in 2013–14 are as follows:

  • Switzerland—$18.4 billion
  • Japan—$3.1 billion
  • Australia—$48 million
  • South Korea—$28 million

Footnotes

Footnote 3

Information provided by investors is confidential and made public only under certain circumstances. Consequently, this report does not provide information on individual transactions. To protect investor identity, data on less than four investments are not reported if doing so could jeopardize confidential information. Note that the asset value of Canadian businesses acquired or newly established is in nominal dollar terms and is not adjusted for asset value changes over time.

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Footnote 4

The five sectors are based on Standard Industrial Classification codes, with each sector composed of subsectors. The business sector mainly includes service-providing businesses, such as computer services, engineering services, employment agencies and advertising agencies. The manufacturing sector includes businesses that produce or manufacture different types of goods, such as machinery, equipment, parts, food, beverages, etc. The resource sector includes agriculture and related services, oil, mining and quarrying industries, crude petroleum and natural gas industries, etc. Wholesale trade includes the sale of different types of equipment, machinery, supplies and chemicals. Retail trade includes clothing, prescription drugs, automobiles and other consumer goods. The other services sector includes businesses in the finance and insurance industries, real estate operators, insurance agent industries, communications, and transportation and storage.

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