Canadian government makes final ruling on Nortel LTE sale

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RIM has been lobbying very hard to get the Canadian government to intervene in the deal between Nortel and Sony Ericsson. The deal involves the sale of a variety of Nortel’s assets including their LTE operations, which are of great interest to RIM in order to future-proof devices.

The Canadian government has ruled on the issue and declined to review the $1.13 billion sale of Nortel Networks’ CDMA and LTE assets to Ericsson. The announcement was made by Canada’s Industry Minister, Tony Clement, and it closes any possibility of the Canadian government intervening in favor of RIM.

The underlying reasons for which RIM wanted the Canadian government to intervene are vague at best. The Investment Canada Act stipulates that the Canadian government must intervene if the sale of Canadian assets to a foreign country poses some security risk.

“There are no grounds to believe this transaction could be injurious to Canada’s national security,” Clement said Wednesday, adding that Ericsson “has the resources and customer base necessary to bring Canadian innovation to market. … This deal is very beneficial to Canada.”

So it looks as though RIM is going to have to find another way to acquire the LTE and CDMA technology it desires.

[Via]

  • http://twitter.com/BlackBerryCool/statuses/4057757248 BlackBerryCool (BlackBerry Coo

    Canadian government makes final ruling on Nortel LTE sale http://bit.ly/bWg93