BlackBerry Ltd (NASDAQ:BBRY) has encounter another obstacle in selling its company after Stephen Harper, a Canadian Prime Minister, has raise national-security concerns over the sale of the company to any foreign based company.
The struggling smartphone maker looking for potential purchaser for the firm that could offer a better deal, but on the other side the country government will deeply examine the selection of any foreign bid for the smartphone manufacture; the review will be based upon the nation’s acquisition law, said the PM of the country in Brussels’ interview with Bloomberg.
Mr. Harper also added, the smartphone firm, is a major player in the information technology sector and the advanced communications and advanced information-technology sector. It would be very important for the country that any potential transactions that include the Canadian smartphone maker in the future should not arise any security concerns in that specific field of the economy.
If BlackBerry Ltd (NASDAQ:BBRY) entirely underwent sale or sale of its assets by parts it will face tough regulatory examination in both Washington and Ottawa. According to Canadian Investment Act, the central government has extensive variety of powers to reject any overseas acquisition of a Canadian company or asset if the government judge that such a transaction would not be considered threat to national security or it will not benefited to the country.
Previously the Canadian Government has block deal of Egyptian telecommunication entrepreneur for the acquisition of Allstream fiber optic network, the company which was hold by Manitoba Telecom Services was blocked by the government due to unmentioned national security concerns.
The government was quite till the announcement of the company that it is looking into potential bidders to acquire its business, but the emergence of bid by Lenovo, a Chinese computer maker has raise security concern in the government. The Chinese firm has signed a non-disclosure agreement to inspect its books. BlackBerry Ltd share rose 2.20% to $8.38 in last trading session.
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