Aecon Group, a Canadian construction company that helped to build the CN Tower in Toronto, recently announced that it will be acquired by CCCC International Holding Ltd (CCCI), of China, for a total of $1.18 billion. The deal, which will require the Canadian government's approval before it can proceed, will include CCCI's acquisition of Aecon's debt in the price, Reuters reported.
The deal, which will be the ninth largest Chinese acquisition of a Canadian firm, will likely be complete sometime during the first quarter of 2018. According to the companies, the acquisition will need to gain regulatory approvals from the Investment Canada Act, the Canadian Competition Act and from Chinese authorities as well.
Aecon said its benefits from the acquisition will include gaining access to money which would all the company to take on bigger projects throughout Canada. For its part, CCCI will keep Aecon's headquarters in Canada, and will hold onto the company's Canada-based workforce.
CCCI, which is the international investment and financing portion of China Communications Construction Company Ltd., will pay 42 percent premium to Aecon's Aug. 24 share price, Reuters reported. CCCI has worked on projects which include ports and navigation channels on China's coast and rivers, as well as other international contracting jobs. This acquisition is only the most recent of deals the 118,000-employee Chinese company has been part of lately, which included the purchase of John Holland, and Australian engineering company, Reuters reported.
