Home FAQ Search Memberlist User Groups Register Login   

BloggingTories.ca Forum IndexBloggingTories.ca Forum Index
    Index     FAQ     Search     Register     Login         JOIN THE DISCUSSION - CLICK HERE      


  

Post new topic   Reply to topic Page 1 of 1
View previous topic :: View next topic  
Author Message
RCO





Joined: 02 Mar 2009
Posts: 9196
Reputation: 301.2Reputation: 301.2
votes: 3
Location: Ontario

PostPosted: Wed May 23, 2018 5:36 pm    Post subject: Canada blocks Aecon takeover by Chinese firm Reply with quote

( this proposed deal always sounded odd to begin with , why would a Chinese firm want a Canadian construction company to begin with that builds Canadian roads and bridges , so not exactly upset that its been rejected )




Canada blocks Aecon takeover by Chinese state-owned firm over national security


By The Canadian Press — May 23 2018



OTTAWA — The federal government has blocked the proposed $1.5-billion takeover of Aecon Group Inc. by a Chinese state-owned company for reasons of national security.

A spokesman for Economic Development Minister Navdeep Bains has confirmed the government's decision to prevent CCCC International Holding Ltd. from acquiring the Aecon construction firm.

Before the decision, the Trudeau government had been warned by experts to proceed cautiously when weighing any investment bids by Chinese state firms and to be as transparent as possible in reviewing the proposed deal.

The Liberals also came under intense domestic pressure to reject the takeover bid.

Ottawa announced a full national security review of the Aecon deal in February. At the time, Bains' office said that, based on advice from security agencies, the government believed there is "a potential of injury to national security."

Aecon has a long history of participation in Canadian construction and engineering projects such as the CN Tower, Vancouver's SkyTrain, the St. Lawrence Seaway and the Halifax shipyard.

The Canadian Press


https://www.nationalnewswatch.com/2018/05/23/canada-blocks-aecon-takeover-by-chinese-state-owned-firm-over-national-security/#.WwXsE0n2Zjr
RCO





Joined: 02 Mar 2009
Posts: 9196
Reputation: 301.2Reputation: 301.2
votes: 3
Location: Ontario

PostPosted: Wed May 23, 2018 5:38 pm    Post subject: Reply with quote

Feds block $1.5B takeover of Aecon by China-owned company over national security

.
Andy Blatchford, The Canadian Press
Published Wednesday, May 23, 2018 5:56PM EDT
Last Updated Wednesday, May 23, 2018 6:33PM EDT


OTTAWA -- The federal government has blocked the proposed $1.5-billion takeover of Aecon Group Inc. by a Chinese state-owned company for reasons of national security.

A spokesman for Economic Development Minister Navdeep Bains confirmed after market closed Wednesday the government's decision to prevent CCCC International Holding Ltd. from acquiring the Aecon construction firm.

The Trudeau government had been warned by experts to proceed cautiously when weighing any investment bids by Chinese state firms and to be as transparent as possible in reviewing the proposed deal.



The Liberals also came under intense domestic pressure to reject the takeover bid.

Ottawa announced a full national security review of the Aecon deal in February. At the time, Bains' office said that, based on advice from security agencies, the government believed there is "a potential of injury to national security."

Aecon has a long history of participation in Canadian construction and engineering projects such as the CN Tower, Vancouver's SkyTrain, the St. Lawrence Seaway and the Halifax shipyard. Aecon could not immediately be reached for comment late Wednesday.

The Chinese government has been highly supportive of the potential Aecon takeover.

It remains to be seen how Ottawa's decision will be received by Beijing and how it could affect Canadian-Chinese relations.

Last month, China's ambassador to Canada defended the proposed deal. Lu Shaye said there was no reason for concern about the acquisition of Aecon because the Chinese side was strictly focused on business and market interests.

"My first impression, to tell you the truth, (is) that I think the Canadian media or the Canadian public is too sensitive about the Aecon case because Aecon is just a construction company," Lu said in response to a question about the takeover bid during a news conference at the Chinese embassy in Ottawa.

"From your side, you have your rules and regulations on the foreign companies overtaking Canadian companies. I think for the national security issue it is your internal affairs. The Chinese side does not want to interfere (with) it."

Lu, who spoke through an interpreter, added that China just wants to ensure Canada has the same standards for Chinese companies as it does for foreign companies from other countries proposing to take over Canadian firms.

CCCC International Holding Ltd. (CCCI) is a subsidiary of China Communications Construction Company Ltd. (CCCC).

A representative of CCCI said Wednesday that it had no immediate comment about Ottawa's decision to block the takeover.

An internal federal document prepared last fall described CCCC as one of the world's largest engineering and construction firms.

The Infrastructure Canada memo said CCCC generated revenue of US$62 billion in 2016 and has core business activities that include the construction of ports, roads, terminals, bridges, rail and tunnels.

Aecon, it continued, generated revenue of $3.2 billion in 2016.

The briefing document was obtained recently by The Canadian Press under the Access to Information Act.

With a file from Jim Bronskill


https://www.ctvnews.ca/business/feds-block-1-5b-takeover-of-aecon-by-china-owned-company-over-national-security-1.3942406
Toronto Centre





Joined: 12 Feb 2011
Posts: 1219
Reputation: 120.6
votes: 4
Location: Toronto

PostPosted: Wed May 23, 2018 7:02 pm    Post subject: Re: Canada blocks Aecon takeover by Chinese firm Reply with quote

RCO wrote:
( , why would a Chinese firm want a Canadian construction company to begin with that builds Canadian roads and bridges , so not exactly upset that its been rejected )

Because they do a lot more than build Canadian roads and buildings, in fact they build all over the world.
With a Canadian name it may open a lot of doors for the Chinese firm that are shut.
Bugs





Joined: 16 Dec 2009
Posts: 6018
Reputation: 290.3
votes: 8

PostPosted: Thu May 24, 2018 9:43 am    Post subject: Reply with quote

There is also the question of if it is a state-owned enterprise. That's important. The main source of work for companies like this is the government. One can imagine concerns about these potentials.
Post new topic   Reply to topic Page 1 of 1

  


 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You can download files in this forum


Canada blocks Aecon takeover by Chinese firm

phpBBCopyright 2001, 2005 phpBB