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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Comment by Gabrielon Nov 15, 2024 9:36am
107 Views
Post# 36314648

RE:Could ARTL (SNC) or WSP be on the hunt for Aecon?

RE:Could ARTL (SNC) or WSP be on the hunt for Aecon?

It is a good and legitimate proposal.

It is a good proposal considering that the life-cycle approach in the management of any infrastructure from needs assessment to disposition is theoretically optimized if one single integrated private partner is in charge. I said private because it has been clearly established in the literature (based obviously on documented and peer-reviewed empirical evidence) that the most cost-effective management of an infrastructure is when a private partner is involved. Normal, they are driven by profits so they strive to better manage but that's in theory because there are many divisions in a large corporation and the finance division isn't always supporting the most cost-effective design on a long term basis but the minimum investment solution, the construction division isn't necessary optimizing for the O&M division, etc. This is why companies like SNC-Lavalin were involved in the whole life-cycle process. But that came at a hefty price for the company because public agencies shoveled most of the risks onto them.

Whether that will happen again depends if the collaborative design to construction model will become the standard for large projects as this collaborative model supports the integration of engineering and contracting firms.

If not, meaning if the collaborative model is not to become a standard then engineering firms would be in conflict preparing design and tender documents for bidding by contractors and supervising the selected bidder and be allowed to bid themselves as contractors.  So Atkins and WSP and/or Aecon if acquired would lose business. 

In my opinion, the collaborative model will become the standard and the integration will happen.
 

 

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