CCCI to acquire Aecon in a deal worth $1.5bn

By Jonathan Dyble
China Communications Construction Company (CCCC) has agreed to acquire Canada’s Aecon Group through its International Holdings company, CCCI. The dea...

China Communications Construction Company (CCCC) has agreed to acquire Canada’s Aecon Group through its International Holdings company, CCCI.

The deal will total $1.5bn, with CCCI paying $20.37 per share, a 42% premium compared to the companies unaffected August share price.

See also:

“We believe this is a very positive outcome for Aecon and our key stakeholders,” said Brian Tobin, Aecon’s Chairman. “This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value.”

In recognising the importance of Aecon to Canada, CCCI will ensure that Aecon remains committed to the country following the transaction. This will include the headquarters remaining in Canada, whilst employment and management will also remain of regional origin.

“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,” said John Beck, President and CEO of Aecon. “We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values.”

Aecon shareholders have reason to be excited about the deal due to the success of Friede & Goldman. With CCCI having acquired the architectural and engineering company back in 2010, Friede & Goldman has since seen its revenues increase fivefold.

Share

Featured Articles

Cement Industry key Target of $20bn US Decarbonisation Plan

As part of President Biden’s Investing in America Agenda, the US Department of Energy is to invest $20bn on cleaning up US industries, including cement

Skanska Reshapes its Sustainability Team

Sweden-based sustainable construction company Skanska refreshes its sustainability team 'to better serve client and company goals'

Kingspan Group 'Cuts GHG Emissions by 65%'

Insulation specialist Kingspan Group's sustainability reports says 2023 business-wide ‘internal carbon price’ explains cuts in Scopes 1 & 2 emissions

Dubai Extends Metro as Millions Switch to Public Transport

Construction Projects

New construction contracts released for HS2 UK rail project

Construction Projects

How to lead a successful EDI migration process

Construction Projects