MDA Clears Hurdle in its Bid to Acquire Space Systems/Loral

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Nimiq 6 built by Space Systems Loral.

MacDonald, Dettwiler and Associates Ltd. (MDA) has cleared one hurdle in its effort to acquire U.S. based Space Systems/Loral Inc. (SS/L). Both MDA and SS/L were notified yesterday that the Committee on Foreign Investment in the United States has cleared the deal.

While this is a good news for the two companies who are trying to finalize the US$875 million deal, the most important hurdle still remains. MDA and SS/L must have approval from U.S. anti-trust regulators.

It was just last week that the U.S. Department of Justice (DOJ) requested further information on the deal, in particular MDA's satellite antenna business based out of Montreal. This was the second request from the DOJ and is part of the ongoing review before the deal can clear the necessary regulatory hurdles.

The acquisition has been slowed down with a closing date being pushed back should the deal be approved.