NEW DELHI:
Canada
on Friday dissolved two
technology companies
' operations within the country, citing concerns over
national security
.
Bluvec Technologies Inc and Pegauni Technology Inc, were ordered to cease all operations in Canada under the provisions of a law that regulates
foreign investments
in the country, as stated by the innovation ministry.
The decision was made following a thorough review process that involved "rigorous scrutiny by Canada's national security and intelligence community", according to Innovation Minister Francois-Philippe Champagne.
"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 any further details regarding the investments, the specific security concerns, or additional information about the companies beyond their names.
Bluvec Technologies' is a manufacturer of drone detection devices. Pegauni Technology' s LinkedIn account indicated that the company produces wireless security products.
The Investment Canada Act, which governs foreign investments in the country, was recently amended to include more stringent national security reviews of proposed foreign investments. The law applies to foreigners who acquire control of a Canadian business or who intend to establish a new business in the country.
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