Aecon sale to face federal reviews encountered by Potash Corp, Norsat and others
TORONTO — Aecon Group Inc.’s proposed $1.5 billion acquisition by a Chinese state-owned company hit a snag Monday when the federal government announced it is stepping up its national security review of the proposed takeover of Canadian construction company Aecon Group Inc. by a Chinese state-owned business.
Toronto-based Aecon said the minister responsible for economic development informed the company that cabinet has ordered a further investigation of the deal under the Investment Canada Act, that will take more time.
Such reviews target investments made by foreign companies trying to acquire control of Canadian businesses and allow the federal government to stop takeovers it deems to be “injurious to national security.”
Since the measures first came into effect, they’ve only quashed a handful of deals.