Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

CCCC Buying Canada’s Aecon for $1.2B as China Goes All In on OBOR

2017/10/29 by Greg Isaacson 1 Comment

Aecon’s John Beck is selling his firm to a Chinese state-owned giant

China’s much-hyped One Belt, One Road initiative seems to be stretching across the Pacific, as a mainland construction giant buys one of Canada’s biggest builders for C$1.51 billion ($1.18 billion). The cross-border infrastructure acquisition comes after Chinese authorities put real estate trophy deals off limits, and follows just one week after the belt and road was added to China’s constitution.

Toronto-based Aecon Group agreed to be acquired by CCCC International Holding Limited (CCCI), the overseas investment platform of state-owned China Communications Construction Company Limited (CCCC), at a 42 percent premium to Aecon’s share price on August 24, according to a statement by the Canadian firm.

Aecon’s board of directors has unanimously recommended the transaction, which concludes a sale process that began this past August. Expected to close by March, the deal would mark the ninth-biggest Chinese purchase of a Canadian firm, according to data cited by Reuters. The transaction still requires regulatory approval in both countries.

Aecon will continue to use its brand name in Canada and will retain its Canada-based employees and management team, the company said. The Toronto-listed group, Canada’s third-largest construction contractor by revenue last year, helped build the city’s landmark CN Tower and the Vancouver Sky Train.

Chinese Investment Poised to Boost Canadian Builder

Aecon Group is Canada’s third-largest construction firm by revenue

“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,” commented John Beck, Aecon’s president and CEO in the statement. “We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values.”

Beck added that he is working with the Aecon management team and CCCI on CEO succession planning, a process that began last year. The statement also noted that the acquisition would give Aecon greater access to capital, allowing the firm to bid on larger and more complex projects in Canada along with more international projects.

“We will continue to rely on John’s experience and leadership as we together take Aecon to a new level,” commented CCCI president Lu Jianzhong.

Mainland Construction Behemoth Lumbers Abroad

Through the deal, CCCC will establish a major foothold in Canada’s construction market, which is poised for growth driven by the government’s push for infrastructure investment, the Hong Kong-listed firm noted in a stock exchange filing.

Ranked third in Engineering News-Record’s list of the world’s top international contractors last year, CCCC has been expanding abroad as both an infrastructure builder and real estate developer. The group has invested or committed over $1.9 billion on major overseas projects in recent years, from a $1.4 billion Sri Lanka port facility to a $290 million investment in Related’s mixed-use Grand Avenue complex in Los Angeles.

The mainland giant has also been adding overseas construction firms to its shopping cart, buying Houston-based offshore engineering company Friede & Goldman in 2010 and scooping up Aussie engineering and construction firm John Holland in 2015. Since it acquired the latter for $879 million, CCCC has been expanding the business of the Melbourne-based firm into property development.

In early 2016, John Holland announced a A$1.1 billion ($779 million) CCCC-funded budget for development and investment focussed on residential and hotel projects. The company purchased the former ANZ Bank Building, an office tower in downtown Sydney which is approved for redevelopment, in a deal worth A$80 million ($60 million) this past June.

Related Stories

  • Greentown China Announces $2.9B Global Investment PlanGreentown China Announces $2.9B Global Investment Plan
  • Canada Blocks CCCC’s Acquisition of Aecon Over National Security ConcernsCanada Blocks CCCC’s Acquisition of Aecon Over National Security Concerns
  • Chinese-Owned Aussie Builder Scoops Up Sydney Project for $60MChinese-Owned Aussie Builder Scoops Up Sydney Project for $60M
  • Singapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4BSingapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4B

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: AECOM, CCCC, China Communications Construction Company, daily-sp, highlight, infrastructure

MTD Proptech Report Download

Comments

  1. AvatarElie says

    2017/10/30 at 11:12 am

    The real value of Aecon is much much more than what the chineese are offering. I thinks shareholders must refuse the offer and the gouvernement of canada must act to stop such a deal.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Investment Manager

Get Mingtiandi Delivered

MTD Proptech Report

Latest Stories

JLL Alex Barnes

Office Vacancy in Hong Kong’s Central Tops 7% for the First Time Since 2004

laurent-jacquemin axa

AXA IM Breaks Ground on $260M Nagoya Distribution Centre with ESR

Amazon Asks India Court to Jail Erstwhile Partner and More Asia Real Estate Headlines

Ben Cha Grosvenor

UK Developer Grosvenor Appoints Kozo Hiratani as Japan President

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Singapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4BSingapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4B

JLL Recruits Finance Veterans to Fill Japan, India Leadership Posts JLL Recruits Finance Veterans to Fill Japan, India Leadership Posts 

Asia Real Estate People in the News 2021-01-25Asia Real Estate People in the News 2021-01-25

UK Developer Grosvenor Appoints Kozo Hiratani as Japan PresidentUK Developer Grosvenor Appoints Kozo Hiratani as Japan President


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse