Foreign Takeovers of Energy in Canada From Income Trust Losses?
"This tax proposal puts a 'for sale' sign on Canadian energy resources by removing a competitive cost of capital advantage - a wave of foreign takeovers is likely to emerge. As a result, Canadian energy decisions will eventually be made outside of our borders."
Canaccord suggested the government has effectively increased the cost of capital for the Canadian oil and gas sector.
"Investors should be concerned that this proposed tax policy will reshape the energy industry and slow the growth of conventional oil and gas development," the firm said.
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