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Ottawa Skips Security Review of China’s Purchase of Canadian Lithium Company

by Andrew Chen

Ottawa did not review the potential national security impacts of a Chinese state-owned company’s plan to purchase Canadian lithium company Neo Lithium Corp.

On Oct. 10, 2021, Zijin Mining Group Ltd. announced its plan to acquire all of Neo Lithium’s outstanding common shares for $960 million. Neo Lithium’s shareholders approved the arrangement with Zijin Mining at a special meeting on Dec. 10, 2021.

All foreign entities that take over Canadian companies through purchases are subject to an initial screening by the federal government, and if Ottawa believes a deal could pose threats to national security, it will be subject to a more thorough review under section 25.3 of the Investment Canada Act

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