February 13, 2018 by Jillian Morgan
The Progressive Contractors Association of Canada (PCA) has called on the federal government to halt the sale of Aecon to state-owned China Communications Construction Company (CCC).
“We are adding our voice to a growing group of builders, safety and public policy experts who view this potential takeover with great concern,” said Darrel Reid, vice president of public affairs for PCA. “Canada has built a strong, competitive construction sector. Opening the door to a foreign state-owned entity with a global reputation for questionable business practices could seriously undermine our industry.”
The $1.5 billion takeover is currently under a national security review review by the federal government.
Ontario’s Superior Court of Justice approved the acquisition in December 2017, with expectations to close in the first quarter of 2018. That deadline has now extended to March 30.
If the proposed transaction is approved, Aecon will continue to be led by its current management team and will retain its Canadian headquarters.
The company has responded to criticisms of the purchase, stating support from unions, commercial and public sector customers and shareholders.
“Aecon welcomes the review on the merits of the proposed transaction and will continue to seek to obtain all the necessary regulatory approvals to close the transaction,” said Aecon CEO John Beck.
Aecon expects the transaction to close in the second quarter of 2018, and before July 13, the Outside Date of the Arrangement Agreement.
SOURCE: PCA AND AECON GROUP