Aecon decision suggests infrastructure deals to face deep security reviews: expert
MONTREAL — The federal government’s decision to block a Chinese state-owned company’s proposed $1.5-billion takeover of Aecon Group Inc. signals Canada’s infrastructure sector has joined the oilsands, defence and aerospace industries in requiring special security protection, said a Canadian security expert.
“The Aecon decision suggests that any major takeover of a major Canadian critical infrastructure company would be looked at very closely on national security grounds,” said Wesley Wark, director of the Security and Policy Institute at the University of Ottawa.
Economic Development Minister Navdeep Bains confirmed the government decided to block the Toronto-based company’s deal to be acquired by CCCC International Holding Ltd. after markets closed Wednesday.
Ottawa announced a full national security review of the transaction in February as experts urged the government to proceed cautiously when weighing any investment bids by Chinese state firms and to be as transparent as possible in reviewing the proposed deal.