Canada orders dissolution of two firms over national security concerns

Canada orders dissolution of two firms over national security concerns/Reuters

Reuters | May 25, 2024 | 09:17 AM IST | Breaking News, Canada, World | Follow on Google News

Canada orders dissolution of two firms over national security concerns

Canada orders dissolution of two firms over national security concerns

OTTAWA, May 24 (Reuters) – Canada ordered on Friday the dissolution of two technology companies’ businesses in the country, citing national security concerns.

The companies, Bluvec Technologies Inc and Pegauni Technology Inc, were given the dissolution order and asked to cease all operations in the country under a law that governs foreign investments in Canada, according to a statement from the innovation ministry.

The decision was taken after a review that involved “rigorous scrutiny by Canada’s national security and intelligence community”, Innovation Minister Francois-Philippe Champagne said in the statement.

“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” Champagne said.
The statement did not give details of the investments, the security concerns, or any information on the companies beyond their names. A spokesperson for the innovation minister did not immediately respond to a request for more information late on Friday.

A website for Bluvec Technologies describes it as a maker of drone detection devices. Pegauni Technology’s website could not be accessed. A LinkedIn account with that name said the company makes wireless security products.

When Reuters called the general number listed on Bluvec’s website for a response, a person who identified herself as Claire said the company had not received any order from the government and was making checks.

Pegauni Technology could not be reached for comment. The law on foreign investments – the Investment Canada Act – was revised earlier this year to add tougher national security reviews of proposed foreign investments.

Foreigners who acquire control of a Canadian business or who wish to establish a new business in the country are subject to the law.

(Except for the headline, this story has not been edited by VoM News staff and is published from syndicated feed)

Reuters