Many companies, such as Birchcliff Energy Ltd to Painted Pony Petroleum Ltd, would find it much easier to attract foreign investors after Canadian Prime Minister Stephen Harper removes the many hindrances for US and European investment prospectors.
Canada would be increasing the ceiling for the review of investment volume from the European Union to CAD1.5 billion or USD1.5 billion as part of its trade agreement, as announced last week. The agreement with Europe would mean Canada would be required to increase the threshold for all the countries it had standing free trade agreements with, such as the United States.
The decision would help companies find new sources for capital infusion in the United States and in Europe, as PM Harper continues the review of investments made by state-owned enterprises. These investments under scrutiny come from Asian countries such as China.
For one part of the economy, specifically mergers and acquisitions in the oil sands industry fell to their lowest since 2004, according to Bloomberg compiled data. Other energy firms, such as Crew Energy Inc, Bellatrix Exploration Ltd, Birchcliff and Pony would see their chances improve.
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