The federal government says it stands by its decision to block a foreign takeover of Canada's premier space technology firm.
Industry Minister Jim Prentice announced the decision early Friday, saying it followed an "extensive and rigorous review process."
Mr. Prentice said he is not satisfied that the deal "is likely to be of net benefit to Canada."
Ottawa first turned down the $1.3-billion takeover bid for the Information Systems Business of MacDonald Dettwiler and Associates Ltd. by Alliant Techsystems Inc. of Minnesota last month.
Alliant Techsystems had 30 days to appeal the decision and the deadline passed Thursday.
This is the first time the federal government had rejected a foreign takeover outright in the 19 years since the Canada Investment Act came into effect.
"Foreign investment plays an important role in the Canadian economy," Mr. Prentice said Friday, adding that foreign investors bring with them capital, knowledge, capabilities and technology that can increase the productivity, efficiency and competitiveness of Canadian firms.
"However, where a significant transaction does not demonstrate net benefit to Canada, it cannot be approved under the Investment Canada Act," he said.
On Thursday, space and weapons manufacturer Alliant appeared to be bracing for a final "no" from Ottawa.
"We have received absolutely no indication" of a change in the Canadian government's position, Alliant chief executive officer Daniel Murphy said Thursday on a conference call to discuss the company's year-end results.
Alliant has also calculated its costs if the deal does not go through, saying that outcome would lead to a charge of 10 to 12 cents (U.S.) a share on its fourth-quarter results.
MDA sought the sale as a way to give its space division access to U.S. defence contracts typically not available to foreign companies, and to generate capital for its fast-growing information products business, which makes software for the real estate sector.
Alliant wanted to gain access to a pool of highly skilled employees in areas such as robotics.
MDA shareholders voted overwhelmingly in favour of the deal, but it triggered a storm of protest in Canada, primarily over the potential loss of control over the recently-launched Radarsat-2, which can distinguish objects smaller than a car from space.