OTTAWA – Industry Minister Tony Clement has approved Ciena’s acquisition of Nortel’s metro Ethernet networks (MEN) division, saying the deal “is likely to be of net benefit to Canada”.
"Ciena’s investment will ensure the continued operation and substantial research and development (R&D) presence of the optical and carrier Ethernet portions of Nortel’s MEN business”, Minister Clement said in a statement. “Ciena has committed to make Canada a focal centre for its global R&D operations and to maintain significant technology investment and principal R&D functions in Canada.”
At least 2,000 Nortel employees were to receive job offers from Ciena, who purchased the division in November for US$530 million in cash plus US$239 million principal amount of convertible notes.
"Canada’s future prosperity relies in large part on our ability to compete in the global marketplace, through two-way trade and investment”, Minister Clement continued. “Foreign investment helps to create jobs and increase competition, which contributes to a stronger economy overall. After a thorough review of the individual merits of this transaction, I have concluded that it will benefit Canada."
