Aecon takeover pushed back by federal security review
The takeover of Calgary-based construction giant Aecon Group has been delayed, with the Canadian federal government currently conducting an in-depth security review of China’s CCCC International Holdings, the company set to acquire Aecon.
The original date of 23 February has now been delayed until 30 March at the earliest as the review process continues.
“Both companies remain committed to working with the Investment Review Division to obtain approval of the transaction,” Aecon said.
The security review process remains the last hurdle preventing the completion of the deal, with the shareholders of both Aecon and CCCC having approved the deal, whilst Ontario’s Superior Court of Justice has also approved the Plan of Arrangement.
“This transaction creates significant and immediate value for Aecon shareholders, strengthens our competitive position in Canada and abroad with enhanced capabilities and financial resources, and provides expanded opportunities for our people,” said John Beck, President and CEO of Aecon.
“We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values.”
The deal represents a 42% premium on Aecon’s unaffected share price as of August 2017, with CCCC offering to pay $20.37 per Aecon share.