The investment arm of China Communications Construction Co., CCCI, has had its CAD$1.5bn takeover of Canadian construction giant Aecon Group delayed by a month in the face of Canada conducting a national security review of the deal.
The previous date of 23 February has now been pushed back until 30 March at the earliest as the federal review process continues.
This remains the last hurdle preventing the completion of the deal, with the shareholders of both CCCC and Aecon having overwhelmingly approved the deal, whilst Ontario’s Superior Court of Justice has also approved the Plan of Arrangement.
“We believe this is a very positive outcome for Aecon and our key stakeholders,” said Brian Tobin, Aecon’s Chairman. “This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”
The $1.5bn offer represents a 42% premium on Aecon’s unaffected share price, with CCCC set to pay $20.37 per share.
“Both companies remain committed to working with the Investment Review Division to obtain approval of the transaction,” Aecon said.