Aecon Sale Nixed By the Federal Government
CBJ — For reasons of national security the federal government has blocked the $1.5-billion takeover of Aecon Group Inc. by a Chinese government-owned company.
Federal Economic Development Minister Navdeep Bains confirmed the government’s decision to prevent CCCC International Holding Ltd. (CCCI) from acquiring the Aecon construction firm. The official announcement was made after the close of the Toronto Stock Exchange.
Ottawa announced a full national security review of the Aecon deal in February after numerous warnings from experts about the potential threat to national security.
“As is always the case, we listened to the advice of our national security agencies throughout the multi-step national security review process under the Investment Canada Act,” Bains said in a statement.
“Based on their findings, in order to protect national security, we ordered CCCI not to implement the proposed investment,” Bains continued. “Our government is open to international investment that creates jobs and increases prosperity, but not at the expense of national security.”
Aecon has an impressive portfolio as one of Canada’s most successful construction and engineering firms. Among some of the projects its most known for include Toronto’s iconic CN Tower, Vancouver’s SkyTrain, the St. Lawrence Seaway and the Halifax shipyard.