Aecon Group Inc. (TSX:ARE) has signed a deal to be acquired by CCCC International Holding Ltd. in a deal that values the construction company $1.5 billion.
The Chinese company has agreed to pay $20.37 per share in cash for Aecon, which announced in August that it was exploring the possible sale of the company.
Aecon shares closed at $16.52 on the Toronto Stock Exchange on Thursday.
CCCI is the overseas investment and financing arm of China Communications Construction Company Ltd., one of the world's largest engineering and construction groups.
The companies say Aecon will continue to be headquartered in Canada while CCCI's size and financial strength will help it bid for larger and more complex projects.
The offer requires the approval of two-thirds of the votes cast at a special meeting of Aecon shareholders as well as government and regulatory approvals under the Investment Canada Act, the Canadian Competition Act and authorities in China.