Chinese Construction Company Will Acquire Canada's Aecon
China’s CCCC International Holding Ltd. has entered into an agreement to acquire Canada's Aecon Group Inc. for $20.37/share in cash, or $1.5B.
“This transaction creates significant and immediate value for Aecon shareholders, strengthens our competitive position in Canada and abroad with enhanced capabilities and financial resources, and provides expanded opportunities for our people,” Aecon President and CEO John Beck said in a news release.
“We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values. I’m excited and proud to be part of this new chapter for Aecon and for Canada," he said. "And I am personally committed to working with the Aecon management team and CCCI on CEO succession planning which began last year, prior to our exploring the sale of the company."
Aecon, a Canadian leader in construction and infrastructure development, reports the $20.37 per share represents a 42% premium to Aecon’s unaffected share price on Aug. 24, when the companies started to negotiate the sale.
CCCI is the overseas investment and financing arm of China Communications Construction Co. Ltd., one of the world’s largest engineering and construction groups. The company plans to maintain the Aecon brand.
“This is an excellent fit for both of our companies,” CCCI President Lu Jianzhong said. “Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public-private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”
The transaction is subject to customary closing conditions, including court approval of the arrangement and approval of two-thirds of the votes cast by shareholders at an upcoming Aecon meeting.