Industry Canada

Industry Canada
OFFICE OF THE MINISTER OF INDUSTRY

OFFICE OF THE MINISTER OF INDUSTRY

October 20, 2005 18:04 ET

Government Reviewing Acquisition of Terasen Inc.

OTTAWA, ONTARIO--(CCNMatthews - Oct. 20, 2005) - The Honourable David L. Emerson, Minister of Industry, confirmed today that there is an ongoing review under the Investment Canada Act for the proposal by Kinder Morgan Inc. to acquire the Canadian companies controlled by Terasen Inc.

The Investment Canada Act is Canada's general legislation on foreign investment. It provides for the review of large foreign investments and investments in cultural businesses.

The Act gives the federal government the ability to negotiate enforceable commitments with the investor during the review process. These commitments assist the Minister in determining whether the investment is of net benefit to Canada, as the Minister is required to do under the Act. Industry Canada officials work closely with potential investors to negotiate these commitments. They also consult with other federal government departments, and the provinces, to obtain their views and concerns relating to the acquisition. These negotiations are, by law, conducted confidentially.

Acquisitions subject to review under the Investment Canada Act receive approval only when they demonstrate a net benefit to Canada. This includes Kinder Morgan's acquisition proposal.

As a former director of Terasen Inc., Minister Emerson will recuse himself from ministerial review of this file. This is to ensure there is no perception of conflict of interest in this important case.

He has, therefore, asked the Honourable Lucienne Robillard, President of the Queen's Privy Council for Canada and Minister of Intergovernmental Affairs, to substitute for him pursuant to Order in Council P.C. 2004-847, in exercising the functions of Minister of Industry and Minister responsible for the Investment Canada Act for the purpose of this application for review. Minister Robillard has agreed to do so.

Contact Information

  • Office of the Honourable David L. Emerson
    Minister of Industry
    Christiane Fox
    (613) 995-9001
    or
    Office of the Honourable Lucienne Robillard
    Michael O'Shaughnessy
    President of the Queen's Privy Council for Canada
    and Minister of Intergovernmental Affairs
    (613) 943-1838
    or
    Industry Canada
    Media Relations
    (613) 943-2502