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ARTICLE · 22 APRIL 2008

Update On Canada´s Foreign Investment Law

Gowling WLG
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A recent decision under Canada's foreign investment law, which involves as the target a space technology firm, raises questions about whether the ruling marks a shift in the way in which our federal government is going to look at foreign investments in Canada and whether this development will put a chill on foreign takeovers.

CanadaCorporate/Commercial Law
Catherine Pawluch
Catherine Pawluch
Robert Milnes
Robert Milnes
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Canadian Government blocks U.S. firm's offer to buy Canada's leading space business

A recent decision under Canada's foreign investment law, which involves as the target a space technology firm, raises questions about whether the ruling marks a shift in the way in which our federal government is going to look at foreign investments in Canada and whether this development will put a chill on foreign takeovers.

The Canadian government refused to give its approval to the proposed acquisition of the space technology division of MacDonald, Dettwiler and Associates ("MDA"), a Vancouver, B.C. - based company, by Alliant Techsystems Inc. ("Alliant"), a Minnesota-based arms manufacturer and U.S. defence contractor. The proposed acquisition includes the space-based radar systems, space robotics, satellite systems and intelligence, surveillance and reconnaissance capabilities of MDA, for a purchase price of

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