Canada Blocks Sale of Space Tech Company To US 230
Dave Knott writes "The Canadian federal government has blocked the $1.3-billion sale of the space technology division of MacDonald, Dettwiler and Associates to Alliant Techsystems, a major US defense contractor. Industry Minister Jim Prentice is quoted as saying he is 'not satisfied' the sale will be a net benefit for Canada. MDA is Canada's leading developer of space-based technology, including the famous CanadArm and the recently installed space station robot Dextre."
Re:Net benefit? (Score:5, Informative)
Re:If they want to sell and cant? (Score:5, Informative)
No, it's not the company's choice. They've received a LOT of funding from the Canadian government, as did their predecessor.
It's the same as the sale of US ports to outsiders.
Re:Net benefit? (Score:1, Informative)
It's a net benefit when the company will no longer be viable without significant investment, and there is no such Canadian investment forthcoming.
Typically this sort of thing occurs due to scale, when Canadian companies are competing internationally. The proposed sale of MDA may reflect the current broadening of space technology beyond NASA projects.
It's interesting that Prentice's letter did not go into greater detail. It displays government oversight while letting industry figure out the details of how to comply. I'm not saying there isn't the smell of politics in the room, just that this particular move was well played.
Re:Net benefit? (Score:2, Informative)
I believe federal regulations require any sale about $295mil to foreign entities be approved. A similar mechanism is likely in place south of the border (e.g., IBM sale to Lenovo, US ports sale to Dubai Inc(?)). It would be foolish to not analyse very large sales to foreign countries.
MDA was/is heavily subsidized by the government.
MDA owns/controls RADARSAT II which surveys the north which is a contentious issue. Transferring ownership could have massive future implications for land or waterway claims especially if the new owners block access to the satellite.
---- I haven't paid much attention but those are the minor bits that I have gathered.
Re:Net benefit? (Score:5, Informative)
It's not over yet (Score:5, Informative)
Re:Take note, Candian entrepreneurs.. (Score:1, Informative)
Re:Ok (Score:5, Informative)
I call bullshit. See what would happen if Lockheed Martin tried to build their new fighter planes in a different country. Or sell off their satellite division to another country. It would go over like a lead balloon in a wind storm. Of course that wouldn't happen, the U.S. would never let companies sell off that kind of technology to another country.
Note that there is a historic sensitivity in Canada to selling off to other countries or otherwise dismantling high tech companies [wikipedia.org]. Especially when said companies that could place the country in a very competitive place, economically and in a technical sense. Canada severely shot itself in the foot before... the pain just subsided over the past decade or so.
Re:Net benefit? (Score:2, Informative)
Comment removed (Score:4, Informative)
Re:If they want to sell and cant? (Score:1, Informative)
There have been rumblings of a sale to a US defense firms for months... and the company has been sending out trial balloons with the most likely candidates to buy the company....with absolutely no protest.
But with a minority government this could be used a as political hot potato...hence the use of the jingoistic "sovereignty" card by the current administration...gets points with the voters but makes no business sense.
Even the unionized employees at the Brampton plant realize they are doomed if this sale doesn't go through and they've been lobbying for the sale.
Re:Well, they had a tin ear for public relations.. (Score:4, Informative)
Re:Ok (Score:4, Informative)
Considering that it`s the little friendly nation next door with a small military and tons of resources, yer damn right we should be worried about our sovereignty; we`re subject to a flood of media, business purchases, and political pressure by the elephant to the south. USA farts, we notice.
One of the biggest threats to our sovereignty right now is surveillance by your institutional conspiracy theorists, the spooks. Selling off our surveillance tech won`t help.
Re:Ok (Score:3, Informative)
Re:Net benefit? (Score:3, Informative)
I wish that were true, especially in light of the fact that some of the companies I mentioned became part of our "national identity" basically through telling us that they were. Here's a break down...
Perhaps the only thing more pathetic than the fact we identify ourselves as a nation by these companies is that this list was just the ones who sold out; there are plenty more that have not; Canadian Tire is probably more a source of patriotism than any of the companies I named before.