Will Americans control CanWest?

The foreign takeover of Canadian businesses continues at an accelerating pace. The tentacles of foreign control are now extending into Canadian media. CanWest is currently involved in merger discussions which could lead to American control of this Canadian media giant. As Thomas Walkon explains in today's Star:

"The essence of the deal is that CanWest, which owns Global Television and 11 daily newspapers across the country, wants to buy Alliance Atlantis, another media firm. But CanWest doesn't have the $2.3-billion needed. So it is proposing an arrangement with U.S. investment banker Goldman Sachs that would see the American firm put up the vast bulk of the money in return for 64 per cent of shares in a new, merged company."

Although CanWest is trying to pretend that Canadians would remain in control, this is clearly a specious argument. Should we be concerned? Indeed we should. Imagine if Fox had controlled CanWest during the Iraq war debates!

The Foreign Takeover of Canada

In a recent overview of foreign takeovers of Canadian companies David Olive pointed out that foreigners have snapped up nearly 600 Canadian firms since the start of 2006. He concludes that Canada is in industrial retreat. The recent bid for Alcan by Alcoa has brought home the message that Canadian assets and companies are for sale to the highest bidder. When even Canadian bankers are voicing concern we know the wolf is at the door.And so we head pell mell to branch plant status of the American colossus. Where is Pierre Trudeau when we need him?