Spy agency warns of foreign takeover dangers as Nexen shareholders give OK

OTTAWA – The same day shareholders of a Calgary-based energy company agreed to a takeover bid by a state firm from China, Canada’s spy agency is warning such purchases can pose a threat to national security.

In its latest annual report, the Canadian Security Intelligence Service says the majority of foreign investment in Canada is carried out in an open and transparent manner.

However, the report says certain state-owned enterprises and private firms with close ties to their home governments have pursued opaque agendas or received clandestine intelligence support for their Canadian pursuits.

The CSIS report, tabled in Parliament today, says that when foreign companies with ties to foreign intelligence agencies or hostile governments try to acquire control over strategic sectors of the Canadian economy, it can represent a threat to security interests.

The spy service’s report came just as shareholders of oil-and-gas company Nexen Inc. solidly voted to support the high-profile Chinese takeover, which still requires federal approval.

While it does not name specific countries or companies, the CSIS report says foreign entities might try to exploit newfound control in an effort to make illegal transfers of technology or engage in other espionage.