MDA-SS/L Deal Clears U.S. Security Review

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PARIS — Canada-based MDA Corp.’s proposed purchase of U.S. satellite builder Space Systems/Loral (SS/L) has cleared U.S. national security review by the Committee on Foreign Investment in the United States (CFIUS), Loral Space and Communications announced Sept. 20.

CFIUS approval had been expected given SS/L’s concentration on commercial satellites, as opposed to military or intelligence spacecraft. With CFIUS’s review now out of the way, it remains for the U.S. Department of Justice to complete its assessment of the acquisition’s antitrust implications.

The Justice Department earlier this month had sent a second series of questions about the transaction to MDA and to SS/L owner Loral of New York, which Loral said would extend the waiting period by 30 days.

MDA of Richmond, British Columbia, which is Canada’s biggest space hardware company, is offering $875 million in cash plus other payments to SS/L owners that brings the transaction’s total value to about $1.1 billion, depending on when the deal closes.

 

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