Stikeman Elliot Offers 10-Trends That Will Impact the Canadian Energy Sector

by Keith Edmund White
Editor-in-Chief

Stikeman Elliot, a leading business law firm with some impressive law blogs, offers there M&A top trends. But more than that, Glenn Cameron, Susan Hutton and Lisa McDowell analyze each trend and look to how these trends will impact the legal (and business) landscape.

Here I’ll just produce the trend-lines, but note—within them—some of the fascinating differences between Canadian and United States M&A and Business Association law, legal differences that make a critical difference to shareholders (both in Canada, the United States, and around the world) bottom line. Over March, I'll try to explore these topics more--especially the (perhaps) emerging consensus in U.S. and Canadian shareholder rights plans, the Canadian unlimited liability business, differences in controlled auctions, and why U.S. firms like using Luxembourg intermediaries in Canadian-U.S. M&As.

And now for Stikeman Elliot's list (for each trend-line's analysis, see their post):

-Foreign Investment Is Going to Continue
-Companies Will Positions Themselves to Participate in Export Markets (read: Canada will seek energy relationships with other nations than the United States)
-Size Will Matter for Midstream Companies
-Natural Gas Producers Will Have Challenges
-More Aggressive Competition Regulation
-Foreign Investment Will Be Approved, But Canada’s ‘net benefit rule’ may cause some problems
-Cross Border Income Trusts Will Continued to be (Cautiously) Offered
-The Use of Luxembourgian Companies and Unlimited Liability Companies (ULs) Created Under certain Canadian Provincial Jurisdiction Will Continue.
-Poison Pills (read: “shareholder rights plans”) May be More Effective as Defensive Tactics
-Controlled Auctions Will Continue (But Note: Controlled Auctions in Canada, re: BCE v. Debentureholders) Notes that Director’s Can Look to Longer-Term Interests than just the highest shareholder value.