Observers say the proposed $1.5-billion acquisition of Aecon, at this moment under security review by means of Ottawa, could be a stepping stone into China’s hardworking infrastructure scheme
MONTREAL — The chief govt of Aecon Group Inc. stated Tuesday that its sale into a foreign buyer would be a serious boon for the company to build its international operations — some sort of expansion that could include a foot in the door in China’s sprawling A person Belt, One Road step, according to observers.
Aecon CEO John Beck said its proposed acquisition by a subsidiary of state-owned Tiongkok Communications Construction Co. (CCCC), among the largest construction firms in the world, would provide much-needed financial relief to the Canadian construction company, letting it compete against foreign conglomerates throughout overseas markets.
“We undoubtedly do some international work, we would do more as we acquire our balance sheet power,” he said.
The $1.5-billion acquisition of Aecon is currently underneath national security review by simply Investment Canada, after the suggested deal prompted heated complaint from some Canadian engineering firms and Members of Parliament inside Ottawa. The final deadline to close the deal is mid-July.
Domestic companies including Ledcor Party, Graham Construction and PCL Constructors Inc. include voiced their concerns on the takeover, saying it would give Aecon a great unfair advantage over its opponents in project bids. Alternative critics argued the sales would pose a threat to country’s security.
Beck has repeatedly forced back against both says, saying Aecon doesn’t possess the form of sensitive intellectual property that would damage national security, and that the domestic market is already bombarded with large multinational conglomerates which have continued to outbid local corporations. Canadian construction companies currently have struggled in recent years to compete with competing bids from Southwest Korean, Chinese, European together with U.S. firms, Beck stated.
“It’s frustrating to have to become bulking up with foreign (companies) so as to compete on your own land — which means that we’re looking for a way to get ripped.”