Ericsson Winning Nortel Bid from Canada’s Grip

In Toronto recently, no issues in the national concerns, which means no reviews in the Canadian investment should be made, even after the government of Canada signed-off on the asset sales of Nortel Networks Corporation to Telefon AB LM Ericsson. Though Ericsson ruled the Swedish wireless company’s US$1.13B bid, possible concerns in security and investment in Canada are not apparent.

Ontario-based Research in Motion Ltd (RIM) had raised objections over the said bidding saying that they have been blocked from it. However, Tony Clement, the minister of Industry Canada have made an announcement that cleared the deal and overcame any objections made. The said company raising objection had suggested that the deal made should be reviewed explaining that the old technology CDMA and newer LTE should remain in the country’s ownership. But despite the effort of the objecting company to raise their proposal to review the deal, Mr. Clement had won by rejecting the proposal assuring them that CDMA and LTE were not critical to Canada’s security.

In addition to the clearing statements made by Mr. Clement, he exclaimed in a globally competent tone that ‘protectionism’ by blocking a sale for the reason that the company is not Canada-based is not an action to resort to. For over 50 years, an Ericsson subsidiary has already been operative in Canada. Going back to the accusations of RIM that their bids on the assets have been blocked by courts, Mr. Clement claimed with the help of his staff that evidence for the accusations are non-existent.