Copyright 2008, Blake, Cassels & Graydon LLP
Originally published in Blakes Bulletin on Competition Law, May 2008
The Canadian Minister of Industry, The Honourable Jim Prentice, confirmed yesterday his decision to block the proposed sale of Macdonald, Dettwiler and Associates Ltd. to Alliant Techsystems Inc.
As we reported in our April 11th bulletin, entitled Investment Canada Giving Greater Scrutiny to Foreign Investments?, the Minister is not satisfied that Alliant Techsystems' application to acquire control of the Information Systems and Geospatial Businesses of MacDonald, Dettwiler and Associates Ltd. is likely to be of net benefit to Canada, this being the statutory standard for approval under the Investment Canada Act.
The Investment Canada Act applies to every acquisition of control of, and establishment of a new, Canadian business by a non-Canadian.
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