The Canadian government under Prime Minister Justin Trudeau has decided to block a buyout deal by Chinese construction company CCCC International of Toronto-based Aecon Group, citing concerns regarding national security.
CCCC offered C$1.22 billion ($947 million) for Aecon, working out at C$20.37/share.
The move follows the outcome of a government review commissioned in February into the national security risk posed by the Chinese company’s proposal.
“We listened to the advice of our national-security agencies throughout the multistep national security review process” Canada’s Innovation Minister Navdeep Bains told the Wall Street Journal.
“Based on their findings, in order to [protect] national security, we ordered [CCCC] not to implement the proposed investment.”