ASM
Radarsat Sale Officially Blocked
Canadian Industry Minister Jim Prentice has confirmed that he will not allow a proposed takeover of the country's largest space technology firm.
The decision means that US-based Alliant Techsystems Inc's $1.3 billion attempt to acquire the space division of MacDonald, Dettwiler and Associates will not go forward.
Speaking on CTV Newsnet's Mike Duffy Live program last Friday, Prentice confirmed an earlier resolution by the government, taken under the Investment Canada Act. The Act allows the government to block sales judged not in Canada's national interest.
The minister was keen to quash speculation that the move would end Canadian co-operation with the US in space.
MDA had expressed concerns that if the sale was blocked, the company could be penalised with bans on bidding for US defence contracts.
But Prentice says he is confident that MDA can continue to be a vital part of the nation's space future without ATK's leadership.
Earlier, the Canadian Space Agency announced a $109 million contract with MDA to service a second-generation robotic arm used on the International Space Station.
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Prentice says another key motivation for his decision was Radarsat-2, an Earth observation satellite built in partnership with the Canadian government. The sale could have affected Canada’s access to the technology associated with the satellite, which was largely funded by taxpayers' dollars.
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