U.S. Steel: Federal Court Upholds the Constitutionality of Section 40 of the Investment Canada Act
|Area||Corporate Finance and Securities, Mergers and Acquisitions|
Before Industry Minister Tony Clement sent a demand letter to United States Steel Corporation (“US Steel”) in May of 2009, it was unclear how sharp the teeth of the Investment Canada Act (the “Act”) could be. That demand letter (described in our client communication entitled Minister Clement’s Letter to US Steel) illustrated the government’s resolve. Last week, a decision of the Federal Court upheld the constitutionality of the federal government’s remedial powers under the Act, indicating that the teeth may have some bite.