May 25, 2018
Practical Law Canada Competition has published a new Legal Update, which discusses the recent decision by the Canadian Government to block the proposed takeover of Canadian construction firm Aecon by China’s CCCI on national security grounds under the federal Investment Canada Act. Below is an excerpt with a link to the full Update.
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This Legal Update discusses the Government of Canada’s decision not to proceed with its proposed $1.5 billion acquisition of Aecon Group Inc. The decision to reject this acquisition was made pursuant to the national security provisions of the Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.). This Update includes a summary of the federal government’s considerations, as well as a discussion of the implications of the decision.
Practical Law Canada Competition
On May 23, 2018, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced that the Government of Canada had ordered China Communications Construction Company International Holding Limited (CCCI) not to proceed with its proposed $1.5 billion acquisition of Canadian construction giant Aecon Group Inc. (Aecon). See Minister Bains statement on CCCI’s proposed acquisition of Aecon.
This transaction would reportedly have been the largest acquisition in Canada by a Chinese state-owned enterprise other than in the petroleum sector.
The decision to reject this acquisition was made pursuant to the national security provisions of the Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.). Minister Bains indicated that the government acted on advice from Canada’s national security agencies and reached this decision in order to protect national security. In arriving at this conclusion, he stated that the Canadian government was “open to international investment that creates jobs and increases prosperity, but not at the expense of national security”.
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For the full Update see: here.
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