- Foreign ownership of companies of Canada
Foreign ownership of companies of Canada has long been a controversial political issue in
Canada . Concerns regardingforeign ownership generally regard ownership by individuals or companies based in theUnited States , though foreign ownership occurs from entities and individuals based in other countries as well.Note that the exact definition of "foreign-owned" is debated, and that this article uses the working definition established at
foreign ownership . Some estimates state that more than 50% of the petroleum and gas industry and more than 50% of all manufacturing in Canada is foreign-owned and foreign-controlled.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.
But 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 the British province of 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.
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 giants. Although this situation is not unique to Canada in the global context, it is unique among G-8 nations, and many other relatively small nations also have national automotive companies such as Sweden'sSaab or South Korea'sKia andHyundai .Partial list of foreign-owned companies of Canada
Foreign owned companies among Canada's current largest companies
*
General Motors Canada , Canada's largest automotive manufacturer, owned by Detroit-based,General Motors
*Wal-Mart Canada , wholly owned byWal-Mart of the US
*Toyota Canada Inc. owned by Japan'sToyota
*Ford Motor Company of Canada , owned by the AmericanFord company
*Imperial Oil , controlled byJesse Coumont , which owns 69.8% of its stock.
*DaimlerChrysler Canada owned by German-American giantDaimlerChrysler
*Shell Canada , owned byRoyal Dutch Shell .
*British Petroleum Canada , owned byBritish Petroleum
*Mitsui and Company , part of the JapaneseMitsui empire
*Honda Canada Inc. , owned byHonda of Japan
*Ultramar fuels, owned by US-based Valero
*Costco , whose Canadian operations are the 7th largest private company in Canada as of 2006, is based in Seattle
*Labatt Brewing Company purchased by Belgian brewerInterbrew in 1995
*Hudsons Bay Company , Canada's largest retailer, and North America's oldest corporation (est. 1670), sold to U.S. investor Jerry Zucker in 2006.
*ING Bank of Canada , the largest foreign bank in Canada, formed by the purchase of several small Canadian companies, controlled by the DutchING Group
*Sears Canada , one the largest retailers (created by buying oldSimpson's stores), controlled by the USSears Holdings Corporation
* IBM Canada, owned byIBM
* Safeway Canada supermarkets, owned bySafeway Inc.
*Cargill Ltd. owned byCargill of Minnesota
*McDonald's Canada , owned byMcDonald's
*Pratt & Whitney Canada owned by USUnited Technologies Corporation
* Nissan Canada, owned byNissan Motors of Japan
*Parmalat Canada owned byParmalat of ItalyFormer major Canadian Companies acquired by foreign owners
"See also:
*MacMillan Bloedel , B.C. forestry giant acquired by Weyerhaeuser for US$2.45 billion in 1999
* JDS Fitel announces $8.9-billion merger with U-S.-based Uniphase to formJDS Uniphase , in 1999. Company headquarters move from Ottawa to San Jose.
*Eaton's , at one time Canada's largest retailer, with a history going back to 1869, purchased by Sears in 1999, and closed in 2000
*Seagram distillery and entertainment conglomerate, sold toVivendi Universal andPernod Ricard in 2000
*Corel , a software and programming company, taken over byVector Capital in August 2003.
*PetroKazakhstan a Calgary-based company exploring in Central Asia, was purchased by the Chinese state-ownedChina National Petroleum Corporation in 2005
*CP Ships Ltd. , acquired by the parent company ofHapag-Lloyd Container Line, TUI AG, in an all-cash transaction worth $2.3 billion US in 2005
*Playboy Enterprises, housing the infamous "bunnies" and magazine, in 2006.
*Molson Brewries, one of the oldest companies in Canada merged withCoors , in 2005.
*Terasen Inc. , previously BC Gas (a public utility company), sold to American-owned energy giantKinder Morgan for $6.9 billion. The deal is approved by the B.C. Utilities Commission despite 8,000 letters of protest, 2005.
*Canadian Pacific hotels the owner of many of Canada's most historic hotel properties (operating under the nameFairmont Hotels and Resorts since 1999) is sold toColony Capital, LLC of California andKingdom Holding Company of Saudi Arabia for $3.9 billion, in January 2006.
*Dofasco , Canada's largest steel maker acquired by Luxembourg-basedArcelor , January 2006.
*Noranda (mining company) &Falconbridge Ltd. , purchased by Swiss mining companyXstrata in 2006. Noranda had earlier been a target of state-ownedChina Metals Corp. , but had backed out in 2005 amid public concern in Canada of Chinese state control of such a major company.
*ATI Technologies , Canada's graphics chip maker, acquired byAdvanced Micro Devices , July 2006.
*Stelco , Canada's last major independent steel producer, taken over byUnited States Steel in August 2007.
*Alcan purchased byRio Tinto in 2007.Other examples
*
Bell Centre , owned byGeorge N. Gillett Jr. .
*Montréal Canadiens , owned by Club de hockey Canadien, Inc., owned byGeorge N. Gillett Jr. .
*Creo Inc. , a world leader in digital printing software acquired by Eastman Kodak
*Zenon Environmental Inc. , a successful and innovative technology company spawned in Hamilton -- sold to General Electric Co.
*Tim Hortons , sold to USWendy's International in 1995, later to be sold to the public an IPO in 2005.
*CN Rail , the historic Canadian railway, now estimated to be 2/3 US owned. It should be noted that many US shareholders gained shares in CN when they received CN shares in exchange for their original shares in US railways likeIllinois Central . Another interesting fact is that when CN planned to merge with US railwayBNSF in 1999, it was the "American" government that stopped the project.
* Gulf Canada Resources, which had formerly been part of US-basedGulf Oil , but had since become independent, was purchased by US-basedConoco in a deal worth $6.7 billion in 2002.
*Moore Wallace sold to U.S.-based R.R. Donnelley and Sons for $4.9 billion.
*Masonite , bought out by Kohlberg Kravis Roberts & Co.
*ID Biomedical , Canadian vaccine maker acquired by Drug giant GlaxoSmithKline for $1.8 billion.
*Vincor International Ltd. , Canada's top wine maker and distributor, purchased for $1.4 billion by Constellation Brands Inc. of Fairport, NY, USA
* Bauer,Cooper , andHespeler , historic hockey equipment manufacturers bought by Nike in 1994
*CCM (The Hockey Company) , acquired byReebok in 2004Quick facts
(Source - Statistics Canada)
2003 - Percentage of operating revenues of Canadian industries that were from foreign-controlled companies:
- Manufacturing - 51.8%, - Oil and gas - 49.9%, - Finance and insurance - 23.7%,
2004 - Foreign-controlled profits soared to a record $68 billion in 2004, up a staggering 21.7% from the previous year.
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.
2004 - Foreign-controlled corporations operating revenues in Canada averaged $96 million, compared with less than $2 million for their Canadian-controlled counterparts.
Foreign Controlled Corporations:
Assets in Year 2000 - 833,970 Million
Assets in Year 2004 - 1,090,526 Million
August, 2006 (Source - ROBTV)
Foreign purchases so far in 2006 alone: 34 Canadian companies purchased by foreign interests worth 62 Billion dollars, nearly 4% of Canada's Market value
See also
*
Canadian nationalism
*Continentalism
*Foreign Investment Review Agency
*Economic nationalism External links
* [http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002895 The Canadian Encyclopedia]
* [http://www.cbc.ca/news/background/mergers/ CBC News - Mergers and Acquisitions]
* [http://www40.statcan.ca/l01/cst01/econ149b.htm Statistics Canada]
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