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ARTICLE · 21 OCTOBER 2013

Canada's First Rejection Of An Investment On National Security Grounds

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October 7, 2013 marked the first time that the Canadian Government expressly rejected a proposed foreign investment on the basis of the national security provisions that were added to the Investment Canada Act in 2009.

CanadaGovernment, Public Sector

October 7, 2013 marked the first time that the Canadian Government expressly rejected a proposed foreign investment on the basis of the national security provisions that were added to the Investment Canada Act in 2009. The Minister of Industry announced that:

"The Government of Canada has concluded its review of the Accelero Capital Holdings' proposed acquisition of the Allstream division of Manitoba Telecom Services Inc. (MTS) under the national security provisions of the Investment Canada Act. The result of this review is that the transaction will not proceed.

MTS Allstream operates a national fibre optic network that provides critical telecommunications services to businesses and governments, including the Government of Canada."

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