Foreign Acquisitions of Key Canadian Defence Firms Spark Sovereignty Concerns
Two major Canadian defence companies, Ultra Maritime and International Submarine Engineering, were recently acquired by U.S. and Israeli firms without apparent national security reviews, contradicting Prime Minister Mark Carney’s push to reduce reliance on foreign-controlled military equipment.
Two prominent Canadian defence firms have been acquired by foreign companies in deals that appear to have proceeded without national security reviews, raising questions about the federal government’s commitment to domestic control over critical military technology.
U.S. defence giant Lockheed Martin purchased Ultra Maritime, a Dartmouth, N.S., company founded in 1947, for more than $3.4 billion. Ultra Maritime plays a key role in developing sonar and undersea warfare systems used on Royal Canadian Navy Halifax-class frigates and future River-class warships. Kristen Leroux, vice president for Lockheed Martin Canada and Latin America, noted that the combined presence anchors a position in Dartmouth with over 1,000 employees in Nova Scotia. 
Separately, Israeli firm Elbit Systems completed the purchase of International Submarine Engineering, an autonomous underwater vehicle company based in Port Coquitlam, B.C., as reported on Oct. 29. Both transactions appeared to go through without a national security review. The Department of Innovation, Science and Economic Development acknowledged awareness of both deals but declined to comment due to confidentiality concerns.
The acquisitions stand in contrast to the stated priorities of Prime Minister Mark Carney, who has pushed to cut Canada's reliance on military equipment controlled by other nations, particularly U.S.-owned firms. On Feb. 17, 2026, Carney announced his government’s defence industrial strategy, promising billions for small- and medium-sized Canadian businesses.
Defence Minister David McGuinty downplayed the foreign acquisitions, stating, "Look, they’re investing. What can I say?"
Critics argue this approach undermines sovereignty. Eliot Pence, founder and CEO of Dominion Dynamics and an official with the Alliance of Canadian Defence Companies (ACDC), argued that federal defence spending is irrelevant if it does not lead to Canadian-owned and -controlled capabilities. The ACDC, which represents wholly Canadian-owned firms, visited Parliament Hill on Nov. 3 to push for procurement policies distinguishing between companies merely operating in Canada and those that are Canadian-owned and controlled. 
Public sentiment appears to align with the industry group's position. A public opinion poll released May 21 by Pollara Strategic Insights for ACDC found Canadians strongly support investing in domestically owned defence companies and oppose relying on American companies.
Scrutiny of foreign ties in the sector extends beyond these two acquisitions. In late September, media reports revealed that Saskatchewan-based Draganfly Inc. received a $10-million investment from Unusual Machines Inc., a company linked to Donald Trump Jr. Draganfly Inc. stated that the investment provided no "special rights" for the American investors. Additionally, a report by the Center for American Progress noted that Lockheed Martin and its subsidiaries have provided more than $16 million to Trump-related causes.