The federal government has confirmed its rejection of U.S.-based Alliant Techsystems Inc. (ATK)'s application to buy MDA.

"I have confirmed my initial decision that I am not satisfied that ATK's proposed acquisition of the information systems business of MDA would likely be of net benefit to Canada. I reached this decision after an extensive and rigorous review process," said federal Industry Minister Jim Prentice in a statement Friday morning.

Today's confirmation is a final blow to the proposed $1.3-billion deal, which has raised controversy amid fears that Canada's sovereignty in the disputed Arctic region would be impaired since ATK, of Minnesota, would gain control of British Columbia-based MDA's remote-sensing Radarsat-2 satellite used in the region.

The federal government issued its initial rejection of the deal in April, marking the first time it has rejected a foreign corporate takeover since the Investment Canada Act was enacted in 1989.

"Foreign investment plays an important role in the Canadian economy. Foreign investors bring with them capital, knowledge, capabilities and technology that can increase the productivity, efficiency and competitiveness of Canadian firms," stated Mr. Prentice. "However, when a significant transaction does not demonstrate net benefit to Canada, it cannot be approved under the Investment Canada Act."

For more details on the MDA sale and the various objections to the deal, click U.S. blinding Canada's eye in the sky? for an April 7 story.