Canada orders dissolution of two companies, citing national security concerns –

By Ismail Shakil

OTTAWA (Reuters) – Canada on Friday ordered the dissolution of two technology companies in the country, citing national security concerns.

Companies Bluvec Technologies Inc and Pegauni Technology Inc were granted dissolution orders and asked to cease all operations in the country under laws governing foreign investment in Canada, according to a statement from the Ministry of Innovation.

The decision came after a review that required “rigorous oversight from Canada’s national security and intelligence community,” Innovation Minister François-Philippe Champagne said in the release.

“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” Champagne said.

The statement does not provide details on investments, security issues or information about the companies beyond their names. A spokesperson for the Minister of Innovation did not immediately respond to a request for additional information Friday evening.

A Bluvec Technologies website describes it as a manufacturer of drone detection devices. The Pegauni Technology website is not accessible. A LinkedIn account with that name says the company makes wireless security products.

When Reuters contacted a general number listed on Bluvec’s website for a response, a person identifying themselves as Claire said the company had not received a government order and was carrying out checks.

Pegauni Technology could not be reached for comment.

The foreign investment law – the Canadian Investment Act – was revised this year to add stricter national security review of proposed foreign investments.

Foreigners who acquire control of a Canadian business 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)

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