OTTAWA (Reuters) – Canada on Friday ordered the closure of two technology companies’ operations in the country, citing national security concerns.
The two companies, Bluvec Technologies Inc. and Pegauni Technology Inc., were ordered to dissolve their companies and to cease all activities in the country under a law that regulates foreign investment in Canada, according to a statement from the Ministry of Innovation.
The decision was made after a review that included “rigorous scrutiny by Canada’s national security and intelligence services,” Innovation Minister Francois-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, the security concerns or any information about the companies other than their names. A spokesman for the innovation minister did not immediately respond to a request for more information late Friday.
A Bluvec Technologies website describes the company as a manufacturer of drone detection devices. Pegauni Technology’s website could not be accessed. A LinkedIn account with that name said the company makes wireless security products.
When Reuters called the general number listed on Bluvec’s website for a response, a person identifying himself as Claire said the company had not received an order from the government and was currently conducting checks.
Pegauni Technology could not be reached for comment.
The Investment Canada Act was revised earlier this year to provide for stricter national security reviews of proposed foreign investments.
Foreigners who wish to take control of a Canadian company or establish a new business in the country are subject to the law.
(Reporting by Ismail Shakil in Ottawa; Editing by Muralikumar Anantharaman)
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