Ahead of the December issue of IM focus on companies supplying EPCM services and contract mining, comes the news that a major Chinese construction group has acquired Canada’s Aecon, which has been involved in several major mining contracts in the potash, uranium, molybdenum, oil sands and other sectors. It has some 500 equipment units exclusively dedicated to mining services. The companies have entered into a definitive agreement under which CCCI will acquire all of the issued and outstanding common shares of Aecon for C$20.37 per share in cash, representing an enterprise value of C$1.51 billion.
CCCC International Holding Ltd (CCCI) is a wholly owned subsidiary of China Communications Construction Company Ltd (CCCC), one of the world’s largest infrastructure companies. With more than 118,000 employees, CCCC is a public company listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange. Headquartered in Hong Kong, CCCI serves as the primary overseas investment and financing platform for CCCC, including multinational mergers and acquisitions and post-acquisition management, infrastructure-related investment and real estate development. CCCI’s subsidiaries include John Holland Group Pty Ltd (John Holland), one of Australia’s largest engineering and construction companies, and Friede and Goldman, Ltd. (F&G), a world leader and innovator in offshore architecture and engineering based in Houston, Texas.
“This is an excellent fit for both of our companies,” said Lu Jianzhong, President of CCCI. “Aecon has a strong management team and a very impressive track record that have made it a leading construction company in Canada and a pioneer in public private partnerships and concession operations. It will now gain access to significant capital, complementary infrastructure expertise and an international network to support its growth ambitions.”
Mr. Lu said: “The vision and leadership of John M. Beck, President and CEO, have built Aecon into the successful company it is today, a diversified business focused on innovation and customer service with a formidable management team. We will continue to rely on John’s experience and leadership as we together take Aecon to a new level.”
“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 Mr. Beck. “We look forward to partnering with a global leader while retaining Aecon’s Canadian headquarters and values. I’m excited and proud to be part of this new chapter for Aecon and for Canada. And I am personally committed to working with the Aecon management team and CCCI on CEO succession planning which began last year, prior to our exploring the sale of the company.”
CCCI recognises Aecon as a leading provider of construction services spanning the four core segments of Infrastructure, Energy, Mining, and Concessions with competitive know-how, state of the art facilities, experienced personnel and leading market positions. CCCI also says it recognises Aecon’s importance to Canada and is committed to ensuring that the transaction will deliver benefits to Canada.
