OTTAWA, O.N. — The federal government has blocked the proposed takeover of the Aecon Group Inc. by China Communications Construction Co. Ltd.
The federal government announced its decision on Wednesday after it launched a review of the $1.2 billion deal earlier this year. In a statement, Innovation Minister Navdeep Bains said that based on his Ministry’s findings, the federal government ordered CCCI not to implement the proposed investment in order to protect national security.
“As is always the case, we listened to the advice of our national security agencies throughout the multi-step national security review process under the Investment Canada Act,” said Bains. “Our government is open to international investment that creates jobs and increases prosperity, but not at the expense of national security.”
Earlier this year, the Aecon-Flatiron-Dragados-EBC Partnership was announced by BC Hydro as having been awarded the contract to build the Site C dam’s generating station and spillways. The contract, valued at $1.6 billion, is the second-largest of the contracts that will be issued by BC Hydro for the $10.7 billion project.
The contractor will be responsible for the placement of approximately 700,000 cubic metres of reinforced concrete, and 34,000 tonnes of rebar. BC Hydro says that the Partnership has signed a project labour agreement that includes unions from the BC Building Trades. Hydro says the agreement will prioritize hiring local and Indigenous workers, with a goal of having up to 25 percent of the GSS workforce being made up of apprentices.