Canada’s Security Review Delays Aecon Deal
Aecon — the company involved in Bermuda’s airport project — confirmed that the ‘outside date’ for their proposed acquisition by a Chinese company has been extended from February 23 to March 30, as the Canadian Government has “ordered a continuation of the national security review.”
Canada’s CBC news reported that the opposition Conservative Party pushed the Liberal government for a formal national security review of the takeover.
“We know Aecon has been awarded numerous sensitive Canadian government contracts, including working with our military and in the nuclear sector. When Bangladesh is sounding alarm bells, why is Canada staying silent and not calling for a full national-security review of the takeover of Aecon,” Conservative MP Tony Clement said in the House of Commons.
“On Friday, Aecon CEO John Beck responded that Aecon offers construction and refurbishment support to clients in the nuclear industry, but the company is not involved in sensitive military installations, nor does it own any intellectual property or sensitive proprietary technology related to nuclear energy,” the CBC report said.
The company said, “Aecon Group Inc. today announced that the Outside Date for completing the Plan of Arrangement with CCCC International Holding Limited has been extended to March 30, 2018, by mutual agreement.
“The parties extended the Outside Date following receipt of a notice from the Minister of Innovation, Science and Economic Development indicating that the federal Cabinet has, under section 25.3 of the Investment Canada Act, ordered a continuation of the national security review of the proposed acquisition of Aecon by CCCI. Accordingly, the review of the proposed transaction under the Investment Canada Act is ongoing.
“The Outside Date was originally February 23, 2018. Either party may, except in certain circumstances, extend the Outside Date from time to time, in increments of at least 35 days for up to 140 days, if the required regulatory approvals have not been obtained. Both companies remain committed to working with the Investment Review Division to obtain approval of the transaction.
“As previously disclosed, the Commissioner of Competition has issued a “no action” letter in respect of the proposed transaction, Aecon shareholders have voted overwhelmingly in favour of it, the Ontario Superior Court of Justice [Commercial List] has approved the Plan of Arrangement, and CCCI has received approval from the National Development and Reform Commission.
“Completion of the proposed transaction remains subject only to approval under the Investment Canada Act and other customary closing conditions for a transaction of this nature. Assuming the satisfaction or waiver of these conditions, the proposed transaction is expected to close by the end of the second quarter and before the July 13, 2018 Outside Date of the Arrangement Agreement.”
When the deal was initially announced in 2017, Steve Nackan, President, Aecon Concessions and Chairman, Skyport, said, “It is business as usual at Aecon and on the Bermuda airport terminal construction project.
“This agreement will create value for our shareholders and enhance Aecon’s capabilities and growth potential, something that we’re very excited about. By joining the third largest construction company in the world, Aecon and Skyport will ultimately benefit from enhanced capabilities and financial resources. However, Aecon will remain a Canadian company.
“This sale will have no impact on the day-to-day of the construction of the new airport terminal or Skyport. The Aecon management team and friendly Bermudian Skyport employees will remain in place and the new airport will be completed on-time and on-budget with the guarantee of the Canadian Commercial Corporation. We look forward to delivering a state-of-the-art terminal in 2020.”
juice? Popcorn anyone?
They probably waiting on the PLP report also…
LLMMAAAAAAOOOOOOO