Canadian Companies Awaiting CFIUS Approval for US Acquisitions

Two Canadian companies recently announced plans to acquire U.S. businesses and are awaiting approval from the Committee on Foreign Investment in the U.S., according to their Securities and Exchange Commission filings. The filings were previously reported by Squire Patton.

CAE Inc., a Montreal-based simulations technology manufacturer, is planning to acquire L3Harris’ “Military Training business” and is undergoing CFIUS’s clearance process, CAE said in a March 9 filing. CAE said it’s buying the business for $1.05 billion and is expected to finalize the deal during the second half of this year, pending CFIUS approval. The company said “there can be no assurance as to the cost, scope or impact of the actions that may be required to obtain such regulatory approvals and clearances.”

Clairvest Group Inc., a Toronto-based private equity firm, is expecting to soon close an acquisition involving First Solar Inc., a U.S. solar panel manufacturer, according to First Solar’s filing. Clairvest Group’s portfolio company, NovaSource Power Services, is acquiring First Solar’s “North American [Operations and Maintenance] operations,” according to the filing. First Solar said it’s awaiting approval from CFIUS but is expecting the deal to be completed during the first half of this year.