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In the Media

A Brave New World: The Climate for Chinese M&A Abroad 

Economist Intelligence Unit 

The Economist

June 1, 2010

According to a June 2010 Economist Intelligence Unit report, there has been a sea change in Canadian attitudes to Chinese investment since public protest forced state-owned China Minmetals in March 2005 to withdraw from negotiations to take over Noranda, then one of Canada's largest mining and metallurgy companies.

However, if the failed attempt to acquire Noranda was an example of what not to do, the investment by China Investment Corporation in Teck Resources was the opposite. Taking 17.2% of the company, rather than a controlling stake, dampened any criticism that China was taking over one of the few large resource companies still in Canadian hands.

Such PIPE (private investment in public equity) transactions are increasingly popular, says Philip Brown in Chapter 3 of the report, "Welcome or Not? The View from Overseas." Torys represented CIC in the Teck Resources deal. Such transactions usually do not trigger an investment review because they do not involve a change of control.

Read the full report here

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