By Ismail Shakil
OTTAWA (Reuters) – Canada on Friday ordered the dissolution of two technology companies’ businesses in the country, citing national security concerns.
Bluvec Technologies Inc and Pegauni Technology Inc have been ordered to dissolve and asked to cease all operations in the country under a law governing foreign investment in Canada, according to a statement from the Ministry of Innovation.
The decision was made after a review that involved “rigorous scrutiny by Canada’s national security and intelligence community,” Innovation Minister François-Philippe Champagne said in the statement.
“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” Champagne said.
The statement did not provide details about the investments, security concerns or any information about the companies beyond their names. A spokesperson for the Innovation Minister did not immediately respond to a request for more information Friday evening.
A Bluvec Technologies website describes it as a maker of drone detection devices. The Pegauni Technology website could not be accessed. A LinkedIn account by that name said the company makes wireless security products.
When Reuters called the number listed on Bluvec’s website for a response, a person who identified herself as Claire said the company had not received any orders from the government and was carrying out checks.
Pegauni Technology could not be reached for comment.
The law on foreign investments – the Investment Canada Act – was revised earlier this year to add more stringent national security reviews to proposed foreign investments.
Foreigners who acquire control of a Canadian company or who wish to establish a new business in the country are subject to the law.
(Reporting by Ismail Shakil in Ottawa; Editing by Muralikumar Anantharaman)
