(Reuters) – Canada has blocked a proposed takeover of construction company Aecon Group Inc <ARE.TO> by a unit of China Communications Construction Company Ltd <601800.SS>, a Canadian government official told Reuters on Wednesday.
The decision was taken on national security grounds, Bloomberg reported, citing a statement from Canadian Innovation Minister Navdeep Bains. https://bloom.bg/2s4RQLD
CCCC International Holding Ltd, the overseas investment and financing arm of China Communications, had offered to buy Aecon for C$1.51 billion (£880.6 million) in October.
Prime Minister Justin Trudeau had earlier said his government will closely monitor security issues when it decides whether to allow the deal, examining the implications for intellectual property protections.
Aecon is known for building Canada’s iconic CN tower in Toronto.
(Reporting by Taenaz Shakir in Bengaluru; Editing by Anil D’Silva)