US: Canada-based satellite equipment manufacturer, Com Dev has successfully resolved the last major hurdle for its sale to U.S. technology conglomerate Honeywell International Inc. As many as 99.3 per cent of shareholders of Com Dev voted in favour of the $455-million deal that will allow Com Dev to sell its space hardware business to Honeywell.
As far as Honeywell is concerned, the company has already received the approvals it needs from the U.S. and Canadian regulators. The transfer of the satellite business to Honeywell was not subject to a “net benefit” review under the Investment Canada Act – which deals with sales of Canadian firms to foreign entities – because the deal was below a $600-million threshold.
It could have been reviewed under separate “national security” provisions of the Investment Canada Act, but the federal government decided not to conduct that review. The sale now just needs court approval, expected next week, and is set to close early in February.
Michael Byers, a political science professor at the University of British Columbia, said the sale of Com Dev’s satellite business is a “potentially significant loss to Canada.” It is difficult to know how big a loss it is, however, because there was no federal review.
Source: Globe & Mail