Blocks Chinese takeover of Aecon on national security concerns

On 23 May 2018, the Canadian government blocked a proposed $1.5 billion acquisition of the Canadian construction company Aecon Group Inc. (Aecon), by China Communications Construction Company International Holding Limited (CCCI), a Chinese state-owned company and one of the world’s largest engineering and construction firms.

In his statement, the Minister of Innovation, Science and Economic Development stated that "In accordance with the Investment Canada Act, the Government of Canada reviewed the proposed acquisition of Aecon by CCCI. (...) Based on the findings, in order to protect national security, we ordered CCCI not to implement the proposed investment." He also stated that "Our government is open to international investment that creates jobs and increases prosperity, but not at the expense of national security."

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Services (Construction)

• Sources:

  • Government of Canada, Minister Bains statement on CCCI’s proposed acquisition of Aecon, https://www.canada.ca/en/innovation-science-economic-development/news/2018/05/minister-bains-statement-on-cccis-proposed-acquisition-of-aecon.html, 23 May 2018
  • Dentons, Canada prohibits Chinese SOE acquisition of Aecon on national security grounds, https://www.dentons.com/en/pdf-pages/generateinsightpdf?isPdf=true&ItemId=wgKZRLhDZv5FEKG7QUMcsfI+UoawHxQS9Br9+0SyliLCMITii3DrKg==, 25 May 2018
  • Borden Ladner Gervais LLP, CANADIAN GOVERNMENT BLOCKS CHINESE FOREIGN INVESTMENT DUE TO NATIONAL SECURITY CONCERNS, http://blg.com/en/News-And-Publications/Publication_5299, 24 May 2018