Reports have revealed that Camelot, the national lottery operator, has been purchased by a Canadian pension fund for nearly 400 Million Pounds.

The five major shareholders of Camelot had agreed to sell the company to the Ontario Teachers' Pension Plan, and the deal directly means that another renowned British firm would now fall into foreign ownership.

The green signal for the deal was sent in by shareholders De La Rue, Fujitsu, Royal Mail, Thales and Cadbury, which is now owned by Kraft. Teachers paid a total of 389 Million Pounds for Camelot, beating a bid sent in by private equity company CVC Capital Partners, which had Sir Matthew Pinset, ex-Olympic rower, on its board.

The buy-out has managed to raise quite a few questions about the National Lottery's charitable pledges, including one that committed raising 750 Million Pounds as funds for the London 2012 Olympic and Paralympic Games. The regulator, National Lottery Commission, will, however, have to approve the deal before it can go through completely.

"We welcome Teachers' commitment to the National Lottery's ongoing success, and look forward to developing the business and delivering even more money for good causes", said Camelot Chief Dianne Thompson.

For about 16 years now, Camelot has been operating the lottery, having renewed its license three times since 1994.