Ottawa rejects takeover of company with Site C contract

Contract rejected

"The Aecon decision suggests that any major takeover of a major Canadian critical infrastructure company would be looked at very closely on national security grounds", said Wesley Wark, director of the Security and Policy Institute at the University of Ottawa.

The completion date of Aecon's deal with CCCC International Holding Ltd, the overseas investment and financing arm of China Communications, had been pushed back in February as Canada extended a national security review, underscoring rising wariness of Chinese firms buying up assets in Western countries. Under the Investment Canada Act, a national security review is conducted with input from Canada's security and intelligence agencies and the Department of Public Safety. "Based on their findings, in order to [protect] national security, we ordered [the Chinese firm] not to implement the proposed investment". (TSX:ARE), citing national security concerns.

New Democrat MP Brain Masse said while he agrees with the government's rejection of the bid, Ottawa took too long to come to a decision.

In an unusual move, the Trudeau cabinet has rejected the sale of Canada's third largest construction company to a notorious Chinese state-owned enterprise for "national security" reasons. The federal government has the ability under the Investment Canada Act to prevent the transaction if it reasonably believes that the transaction presents national security concerns.

"These is no doubt that the decision made by the Canadian government is by no means a good news for the investment co-operation between China and Canada", said a statement released by the Chinese embassy in Ottawa. "Premier Horgan now has more freedom of action to increase regulatory measures for Site C to ensure worker safety and restrict the inevitable, and to me, unacceptable, environmental damage", she said.

CCCI's Beijing-based parent, CCCC, is one of the biggest engineering and construction companies in the world and is the largest contractor building China's Belt and Road Initiative across Asia through to Africa. The Chinese state-owned enterprise is 64 per cent owned by the Chinese government.

"If they are making investments, first of all they are not making investments necessarily based on market decisions because they are directed by a country, directed by a state".


The Conservatives had been pressing the Trudeau government for a formal national security review of the takeover.

Earlier this year, the Aecon-Flatiron-Dragados-EBC Partnership was announced by BC Hydro as having been awarded the contract to build the Site C dam's generating station and spillways. The overall outlook is positive with areas of strength in Aecon's business in infrastructure, nuclear, telecom, gas and power distribution, expected to outweigh the impact of fewer opportunities in commodity and oil related markets.

As part of the net-benefit analysis of the deal, Innovation Department officials examined details of Aecon's current activities in the United States.

The acquisition of Aecon by the Chinese firm had already cleared most of its hurdles, after receiving the approval of Aecon shareholders, court approval and clearance from Canada's competition regulator. The decision is in pointed contrast to the decision by the Australian government in 2015 to permit an acquisition of a prominent Australian construction company (John Holland) by a CCCI affiliate. CCCC is 64-per-cent owned by the Chinese government.

The World Bank in 2009 banned CCCI from bidding on construction projects for eight years due to a bid-rigging scandal in the Philippines.

Aecon Group Inc. (TSX: ARE) is a Canadian leader and partner-of-choice in construction and infrastructure development.

What happens to trade talks?

Related News:

  • Russian oligarch met with Michael Cohen at Trump Tower during transition

    Russian oligarch met with Michael Cohen at Trump Tower during transition

    Intrater said the meeting included only a brief discussion about relations between the United States and Russian Federation . Trump's inaugural committee secured him tickets to an inaugural dinner, and Vekselberg attended the dinner with him.
    Tesla settles class action lawsuit over 'dangerous' Autopilot

    Tesla settles class action lawsuit over 'dangerous' Autopilot

    Police say data retrieved from the Model S show Lommatzsch did not touch the steering wheel for 80 seconds before the collision. It revealed that she had "manually pressed the vehicle brake pedal fractions of a second prior to the crash".
    Lava from Hawaii volcano enters ocean from 3 flows

    Lava from Hawaii volcano enters ocean from 3 flows

    Travis said workers might also try to plug the wells, perhaps by filling them with mud and capping them with iron plugs. He said he has a lung disease and air quality was getting too poor after lava entered the ocean upwind of his home.
  • Tropical update and Memorial Day forecast

    Tropical update and Memorial Day forecast

    Alberto is expected to continue moving northward and is expected to make landfall somewhere on the northern Gulf Coast on Monday. This is due to tropical moisture that will be interacting with a frontal zone in the region, says the National Weather Service .
    Trump gives commencement address at US Naval Academy

    Trump gives commencement address at US Naval Academy

    Trump is traveling to Annapolis, Md ., to address the U.S. But in recent years, the problem grew worse. Naval Academy graduation ceremonies.
    Amazon: Echo device sent conversation to family’s contact

    Amazon: Echo device sent conversation to family’s contact

    After unplugging all her Alexa devices , Danielle called Amazon to find out why the devices had been recording her conversations. The Portland couple reported the invasion of privacy to Amazon, who called the incident " an extremely rare occurrence ".
  • Polish novelist Olga Tokarczuk wins Man Booker Prize 2018 for Flights

    Polish novelist Olga Tokarczuk wins Man Booker Prize 2018 for Flights

    The £50,000 prize will be divided equally between Tokarczuk and her Los Angeles-based translator Jennifer Croft . The Man Booker International Prize celebrates the English translations of works of international literature.

    "European Union slams ‘fantasy" UK Brexit gambits

    The plan, also known as "max fac", is one of two options under consideration by the Cabinet and a model favoured by Brexiteers. Minister of State for European Affairs Helen McEntee welcomed Mr Corbyn's commitment to avoid a hard border.
    Caught on camera: man attacks SUV with sledgehammer

    Caught on camera: man attacks SUV with sledgehammer

    The video shows a red pick-up truck following a vehicle into a parking lot on the 2700 block of East Luzerne Street. After a few seconds, the SUV drives off, seemingly with both the driver and the passenger in the blue shirt.
  • New Privacy Law Makes Europe World’s Leading Tech Watchdog

    New Privacy Law Makes Europe World’s Leading Tech Watchdog

    The European flag flatters in the wind past the headquarters of the European Central Bank in Frankfurt am Main, Germany. Regulators in the USA tried to introduce similar privacy safeguards but were stopped by lawmakers.
    Weinstein accusers Rose McGowan, Asia Argento respond to arrest: ‘We got you’

    Weinstein accusers Rose McGowan, Asia Argento respond to arrest: ‘We got you’

    He sought treatment for sex addiction at a facility in Scottsdale, Arizona, the New York Times reported . Film producer Harvey Weinstein arrives at the 1st Precinct in Manhattan in New York , May 25, 2018 .
    Split With Deripaska to Avoid Sanctions, US Tells GAZ

    Split With Deripaska to Avoid Sanctions, US Tells GAZ

    In addition, since June 28, members of the En+ board of directors, which is controlled by Deripaska, have left their posts. The company's controlling shareholder, En+, said on May 18 that Deripaska had resigned from its board of directors.


Most liked

Notley to skip premiers conference to focus on pipeline deal
Notley said Tuesday she was skipping the meeting because her time was better spent in Edmonton making sure the project goes ahead. Federal government representatives have not indicated whether they will support the bill in the House of Commons, Cousineau said.

Putin says he will step down in 2024 as constitution requires
Macron acknowledged Paris and Moscow disagreed on a range of issues but called for "strong multilateralism". He also railed against the United States applying its laws beyond its borders to punish foreign companies.

ESPN Adds Fights to UFC TV Rights Deal, Reaching $1.5 Billion Value
There are still more than seven months remaining in the partnership between the UFC and FOX Sports. UFC will maintain control of its pay-per-view cards and continue to limit them to 12 per year.

Is Nicki Minaj dating Eminem?
Nicki took to Instagram late Thursday to hype her latest work on, Big Bank , a YG track that also includes Big Sean and 2 Chainz . Since my divorce I've had a few dates and nothing's panned out in a way that I wanted to make it public.

Morgan Freeman dropped by Visa and Vancouver Transit following harassment allegations
TransLink spokesman Chris Bryan confirmed to the Sun that the use of Freeman's voice was part of an ad campaign for Visa. Morgan Freeman is seen making creepy sexual comments to female reports in more unearthed interviews that have surfaced.

Morgan Freeman accused of sexual harassment; apologises
He has also been nominated for an Emmy for Revelations Entertainment's The Story of God with Morgan Freeman . She claimed that Freeman made comments about her body nearly every day and would rub her lower back.

SRH vs KKR: Who will win today’s IPL 2018 playoffs game?
Sunrisers Hyderabad vs Kolkata Knight Riders is the 59th of total 60 games to be played in the Indian Premier League season 11. If you have access to the television, then you go for Star Sports tv channels as it's the official broadcaster.

Man Court Ordered To Leave Parents House Does Awkward AF Interview
They do tell their son to get a job and move his broken-down vehicle . "I don't have the means to do that tomorrow", he said. Rotondo received another letter shortly after that read: "Michael Joseph Rontodo, you are hereby evicted".

Syria state-run media reports US-led airstrike on army posts
Israel called it its most serious operation in Syria since the 1973 Mideast war. But, a United States official has denied any knowledge of the strikes.

Philip Roth Once Torched Donald Trump In The Most Literary Way
Roth, who lived in NY and CT , was best known for mining the Jewish-American experience in his more than 30 novels. Thurman said that after he stopped writing Roth spent his free time reading and swimming, and meeting friends.

Pressure’s on James, Cavaliers in Game 6 vs. Celtics
When Game 5 of the Eastern Conference Finals arrived Wednesday night, the Celtics understood exactly what they were up against. Louis and prestigious alum of Chaminade Prep - played the lead role in his Boston's 96-83 home court victory in Game 5.

Rockets use strong defense to move a win from NBA Finals
He had himself a night in Game 5, scoring 20 points and tallying seven rebounds, six assists and three steals for the Rockets . He's averaging almost 37 minutes per night, scoring 19.8 points to go along with 6.8 rebounds and 4.6 assists per contest.

Latest updates on the Noblesville West Middle School shooting
A new threat has prompted another lock-down at Noblesville High School, the district said in an email to parents. Vice President Mike Pence , who previously served as governor of IN , offered prayers for the victims.

Civilian kills gunman after shooting at Oklahoma restaurant
Jennifer Stong hugged Tasha Hunt outside the scene of a shooting on the east side of Lake Hefner in Oklahoma City , Thursday. The mother, Natalie Will, was walking into Louie's Grill & Bar, to celebrate the birthday of her eldest daughter, Shayla.

NFL's new anthem policy will be better for all parties involved
The policy doesn't state what is constituted as a lack of respect, but Rooney doesn't think further clarification is necessary. Broncos linebacker Brandon Marshall also went public on Trump's comments, calling them "disgusting", as reported by ESPN .