Aecon deal nixed over fears about Chinese access to data on key infrastructure
OTTAWA — The federal government rejected the Chinese takeover of a Toronto-based construction firm on national security grounds because it would have given Beijing access to a trove of sensitive data about some of Canada’s most-critical infrastructure, such as nuclear power plants and the Toronto subway, says a senior government source.
The Trudeau government cited reasons of national security for its decision this week to decline the proposed $1.5-billion purchase of Aecon Group Inc. by CCCC International Holding Ltd. (CCCI).
The insider, who spoke on condition of anonymity due to the delicate nature of the file, described the decision as black and white. The source said it was largely due to deep concerns about the potential consequences of a state-owned enterprise controlling Aecon — along with its extensive historical records from major infrastructure projects over the decades.
In addition to information that would have been collected through future projects, the source said the Aecon takeover would have given CCCI access to intellectual property from the company’s long history of construction in Canada, particularly its work on transportation, telecommunications and electricity grids.