The world’s nicest nation™ has finally found something to get wound up about. Canada’s government has triggered a row by blocking a US company’s attempt to take over its biggest space-tech company.

MacDonald Dettwiler and Associates, builder of the megalomaniac Dextre space robot, was to be sold for $1.3 billion to Alliant Techsystems (who seem to be called ATK these days). As the Toronto Star notes, “It was a high-stakes decision, because the space division of MacDonald Dettwiler includes Radarsat-2, a unique radar imaging satellite designed to protect Canada’s sovereignty and built with the help of $445 million in Canadian taxpayers’ money.”

But the government has decided the takeover is not “likely to be of net benefit to Canada” (AFP). The Register thinks this is all about Radarsat-2, which the government currently has free access to imagery from.

As the Financial Times notes (subscription required):

Canada has waved through foreign takeovers of a long list of corporate icons over the past five years. In spite of protests against the “hollowing out” of corporate Canada, foreigners now control Alcan, Inco and Falconbridge, three of the biggest metal producers; Hudson’s Bay, the country’s largest retailer; and Molson, the Montreal-based brewer.

Which makes the rejection by the Conservative government of a C$1.3bn ($1.27bn, €800m, £650m) bid by Alliant Techsystems of the US for the space division of MacDonald -Dettwiler all the more unusual.

It’s not just shareholders who are annoyed at the blocked bid. Some MDA employees are worried to.

“If this deal doesn’t go through and Canada doesn’t step up with funding [of its space program], we will lose those jobs and the intellectual property, which will be very unfortunate, I think,” says said Janine Symanzik, president of SPAR Professional and Allied Technical Employees Association (CanWest News).

The Globe and Mail’s Streetwise blog sees a way out:

With polling numbers showing enormous support for the Conservative’s move, no one should expect the politicians to change their minds. Alternative ideas are required, and the simplest transaction, that doesn’t require federal blessing, would see MDA simply spin out the space division as a new company.

Image top: Radarsat-2 / Canadian Space Agency and MacDonald, Dettwiler and Associates

Image lower: Dextre / NASA