The federal government ruled that MTS cannot sell its Allstream division to Accelero Capital Holdings because it would violate national security.
MTS had signed an agreement in May to sell the business for $520 million to the Egyptian investment firm, which had a previous ownership stake in WIND Mobile.
James Moore, Minister of Industry, stated: "The Government of Canada has concluded its review of 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."
Moore added: "MTS Allstream operates a national fibre optic network that provides critical telecommunications services to businesses and governments, including the Government of Canada."
MTS expressed disappointment in the decision especially since the proposed takeover would increase competition in Canada's telco sector, display that Canada's telecommunications industry is open to foreign investment and continue to add innovative products to increase the productivity of Canadian businesses.
"MTS Allstream and Accelero continue to believe this transaction is to Canada’s net benefit and to the best of our knowledge would not be injurious to national security," said an MTS spokesperson.
Discuss this further in Digital Home's MTS forum.
MTS had signed an agreement in May to sell the business for $520 million to the Egyptian investment firm, which had a previous ownership stake in WIND Mobile.
James Moore, Minister of Industry, stated: "The Government of Canada has concluded its review of 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."
Moore added: "MTS Allstream operates a national fibre optic network that provides critical telecommunications services to businesses and governments, including the Government of Canada."
MTS expressed disappointment in the decision especially since the proposed takeover would increase competition in Canada's telco sector, display that Canada's telecommunications industry is open to foreign investment and continue to add innovative products to increase the productivity of Canadian businesses.
"MTS Allstream and Accelero continue to believe this transaction is to Canada’s net benefit and to the best of our knowledge would not be injurious to national security," said an MTS spokesperson.
Discuss this further in Digital Home's MTS forum.
