Reference news network reported on 24 May Foreign media said that the Canadian Liberal Party government on the 23rd stated that it was for national security to stop Chinese-funded enterprises from acquiring nearly a billion US dollars in transactions for a construction company.
According to the US “Wall Street Journal” website reported on May 24, Canada in February ordered the China National International (Hong Kong) Holdings Co., Ltd. to acquire Toronto Aecon Group Inc. plans to launch a national security assessment.
According to Reuters' report on May 24, China Construction Association officials said on the 24th that at present, the Canadian government has not received any documents refusing to buy the Canadian construction company Aecon Group (ARE.TO).
China Communications International’s overseas investment and financing subsidiary, China Communications International, proposed to acquire Aecon in October last year. However, a Canadian government official told Reuters on the 23rd that Canada has prevented China Communications Construction’s acquisition of Aecon Group Inc.
According to the Hong Kong Headline Finance Network reported on May 24, foreign media quoted Canadian innovation minister Navdeep Bains’ statement that the decision was based on national security reasons.
In October last year, during the acquisition of Aecon by an indirect wholly-owned subsidiary of China Communications Construction Corporation, Canadian Prime Minister Trudeau stated that when deciding whether to approve the above transaction, the government will pay close attention to safety issues and review its Impact on the protection of intellectual property rights.
Reference News Network - Reporter of the sea knows that on October 26, 2017, the company’s China Communications International officially signed a 100% stake in Aecon Group Inc. (Aecon), a Canadian listed company, in Toronto. Purchase agreement. The purchase price is 1.45 billion Canadian dollars (equivalent to approximately 7.509 billion yuan), and plans to complete the share delivery in the first quarter of 2018 after obtaining approval from relevant government regulatory agencies.
Aecon was founded in 1877 and listed on the Toronto Stock Exchange of Canada in 1987. The company is headquartered in Toronto. The company ranks among the top three construction engineering companies in Canada and enjoys a high reputation in the industry. The company's main businesses include infrastructure, energy engineering, mining infrastructure (contract mining) and franchising four major sections. Infrastructure sectorIncluding rail transportation, road and bridge tunnels, airport construction, hydroelectric power generation, sewage treatment, etc.; energy engineering sector includes conventional energy such as hydropower, heat, electricity, oil, and natural gas, as well as new energy sources such as solar energy, wind energy, biomass, and waste-to-energy. The construction of related facilities, in particular, has outstanding nuclear power construction capabilities; the mining infrastructure (contract mining) section covers the entire process of mining projects; the franchising sector mainly involves PPP, BOT, BT in the fields of rail transit, toll roads, bridges and airport construction. , BOO, BOOT and other project modes.
Aecon's business is diversified, and the "integration" mode of operation for each business unit is very mature. This self-supporting ability to cover the whole life cycle of the project makes it uniquely competitive and wins. The recognition of numerous customers, especially its experience in the franchising sector, further consolidated its market position.
Aecon's 2016 operating revenue was CAD 3.313 billion (equivalent to approximately RMB 16.639 billion), after-tax profit was CAD 47 million (equivalent to approximately RMB 243 million), and total assets were CAD 20.05 billion ( Equivalent to RMB 10.383 billion). As of June 30, 2017, the amount of uncompleted contracts in hand was approximately CAD 4,351 million (equivalent to approximately RMB 22,523 million).
According to reports, the acquisition of Aecon is another major step in China’s development strategy for international operations. The acquisition will earn a substantial breakthrough for the company's full entry into the North American market and an important platform for the establishment and development of North American operations. The acquisition or will enhance China's game capabilities built in high-end mature markets.
After the completion of the acquisition, Aecon, as a subsidiary of China Communications Construction Corporation, will maintain its original brand and continue to conduct business operations in Canada, and China Communications Construction will also provide strategic and funding for Aecon in due course. , business network, technology, and other aspects of support, with its formation of good business complementarity, interaction and integration to help it win more large-scale comprehensive and complex projects, and gradually expand to the international market. The acquisition will become another example of cross-border mergers and acquisitions after China Communications Construction’s successful acquisition of US F&G, John Holland Australia, and Brazil Concremat, laying the foundation for the company's advancement into a world-class enterprise with international competitiveness.
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