CCCI to acquire Aecon in a deal worth $1.5bn
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.
“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.