TORONTO — The federal cabinet has told Aecon Group Inc. that it will take more time to complete a national security review of the proposed takeover of the Canadian construction company by a Chinese state-owned business.
Toronto-based Aecon says the minister responsible for economic development informed the company that cabinet has ordered a further investigation of the deal under the Investment Canada Act.
The government’s approval is the last major hurdle that Aecon must clear to close the $1.5 billion deal.
The takeover of Aecon by CCCC International Holding Ltd. (CCCI) has come under intense criticism from a number of sources, including Conservative member of Parliament Tony Clement, a former industry minister.
Aecon fired back at its critics, saying that it feared the federal security review would be tainted by false or misleading claims.
On Monday, Aecon said CCCI has agreed to extend the deadline for closing the deal to March 30 — five weeks later than the previous deadline of Feb. 23.