Key is to ensure foreign ownership adheres to transparency and
LONDON, England, Nov. 14, 2012 /CNW/ - CIBC (CM: TSX) (CM: NYSE) — In
order to allow State-Owned Enterprise to invest in Canada, public
policy must ensure that foreign investments adhere to strict standards
of governance and transparency says the Hon. Jim Prentice, Senior
Executive Vice-President and Vice Chairman of CIBC.
In a speech to the Oil & Money 2012 conference in London, Mr. Prentice
told the audience that 'turbulence' in Canada over SOEs may have
surprised the international business communities, but that there was
obvious and escalating public concern in Canada about SOE investments.
"This controversy has been building for years," said Mr. Prentice. "And
it achieved a force in recent months that can be fairly said to be
turbulence. This is because of two proposed investments in Canadian
energy companies by two State Owned Enterprises - Petronas from
Malaysia and CNOOC from China."
Mr. Prentice noted that "this is a pivotal time for the Canadian
government". He continued, "it must consider its policy on foreign
investment in light of the growing and evolving role of SOEs in
Canada's oil and gas industry. However, Canada must and will remain
open for business and that means open to foreign investment".
In fact, he said Canada is aggressively engaged in diversifying its
energy markets with an eye to Asia - and with good reason.
"Saying "no thanks" to the largest new market opportunity, namely China,
would be patently unwise. Particularly in circumstances where the
transactions do not imperil Canadian values or environmental and labour
laws," stated Mr. Prentice.
However, Mr. Prentice cautioned that it would be naïve to think that the
acquisition of Canadian energy resources by foreign governments or
their surrogates would not raise public policy questions.
"While Canada is most definitely open for business - it is not for
sale," said Mr. Prentice.
CIBC is a leading Canadian-based global financial institution. Through
our Retail and Business Banking, Wealth Management and Wholesale
Banking businesses, CIBC provides a full range of financial products
and services to 11 million individual, small business, commercial,
corporate and institutional clients in Canada and around the world. You
can find other news releases and information about CIBC in our Press
Centre on our corporate website at www.cibc.com.
The speech is available at :http://files.newswire.ca/256/OilandMoneydistribution1.pdf
For further information:
Kevin Dove at (416)-980-8835 or firstname.lastname@example.org