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owned enterprises are not really allowed to do deals involving oil and gas generally, although that's not exactly what our federal government's policy is." Investment Canada Act confusion is definitely a concern. A year ago, an updated government policy statement was issued on how it would be applied to resourcetype transactions but for smaller deals that have gone under the review thresholds that legislation has not really got in the way. "Our sense is that the policy statement of a year ago is still interpreted more broadly as perhaps the whole oil and gas sector is something that's off limits for SOE." In 2014, Gilliland predicts there will be more asset-specific transactions rather than company-specific transactions and they will be focused around infrastructure. "From China we continue to have a sense that private investors there are looking at our resources — both mining and oil and gas — but I think their appetite is more for producing types of assets rather than exploration or non-cash flow generating assets — that is what we're seeing," says Gilliland. In the resources sector, much will depend on what the U.S. is doing, in terms of its economy, but also in terms of climate change and pipelines — matters that have a tremendous "attitudinal" impact, says Seidel. "That sector is so important in Canada that it drives everything else to a large measure." He predicts the future of M&A in Canada will include renewable energy, which he says is a "natural for consolidation," but is also ripe for integration of new technologies. They may not be of the order of magnitude of the giant deals seen in retail last year but will be strategically important and the building blocks of a diversifying economy and source of energy for existing economies. Manufacturing or processing organizations may be looking at acquisitions in the area of renewable energy or diversity of energy supply — greening up, if you will. "I think those are parts of the economy that are really strategic and important," says Seidel. He also sees transportation — specifically rail and road — as other prospective areas of consolidation. "I don't mean CN/CP but other rail businesses out there. People are looking with a really different lens than even two years ago because of the opportunities — not just oil but other goods and commodities and how important that's become." These won't be conventional M&A deals but they have an edge that involves research and innovation, not necessarily an existing business platform but creation of new business platforms. Of course, sluggish economy aside, there are other significant impediments to M&A activity. One is a need for a clear statement and vision on SOEs and the Investment Canada Act as well as a clear vision from the competition tribunal. In October, the government used provisions of the Investment Canada Act to block the Accelero/Allstream deal citing concerns about national security. And despite comments from the competition bureau that it has become a kinder, gentler, easier body to deal with, many, like Seidel, are skeptical. "A friendly no is as bad as an unfriendly no." EV E N A P OWE R H O U S E C AN U S E MO RE POWE R. Henein Hutchison is pleased to announce that Murray Segal will be joining as counsel. As former Deputy Attorney General of Ontario and long-serving Chief Prosecutor, he has over 30 years of experience. Murray is a legal icon, known for his innovation in public administration, and is respected as an unparalleled strategist. He knows that every problem has a solution and he has a track record of results to match. A conflict resolution specialist, litigator and advisor on complex litigation, Murray represents clients in both the public and private sectors. More experience. More defence. hhllp.ca HNACORP34963_Can Lawyer_A.indd HNACORP34963_Can Lawyer_A.indd 1 www.CANADIAN L a w ye r m a g . c o m F e b r uary 2014 45 14-01-21 11:14 AM

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