Industry Canada speaks

Canada reminded the biotech industry last week that governments have the last word when it comes to mergers. The Canadian minister of industry, Brian Tobin, did not meet a March 30 deadline to approve the proposed $4 billion stock acquisition of BioChem Pharma Inc. by Shire Pharmaceuticals Group plc, noting that he was not satisfied that the deal is of net benefit to Canada.

According to Suzanne McKellips, executive director of the investment review division of Industry Canada, the legal basis for review of cross-border business mergers is provided by the Investment Canada Act of 1985, which applies to any investment over C$209 million (US$134 million) by members of the World Trade Organization...