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OTTAWA – The federal government has blocked the proposed $1.5-billion takeover of Aecon Group Inc. by a Chinese state-owned company for reasons of national security.

After markets closed Wednesday, a spokesman for Economic Development Minister Navdeep Bains confirmed the government’s decision to prevent CCCC International Holding Ltd. from acquiring the Aecon construction firm.

The Trudeau government had been warned by experts to proceed cautiously when weighing any investment bids by Chinese state firms and to be as transparent as possible in reviewing the proposed deal.

READ MORE: Trudeau government warned to be careful before approving Chinese takeover bid for Aecon construction (Oct. 2017)

The Liberals also came under intense domestic pressure to reject the takeover bid.

Ottawa announced a full national security review of the Aecon deal in February. At the time, Bains’ office said that, based on advice from security agencies, the government believed there is “a potential of injury to national security.”

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Aecon has a long history of participation in Canadian construction and engineering projects such as the CN Tower, Vancouver’s SkyTrain, the St. Lawrence Seaway and the Halifax shipyard.

The Toronto-based firm could not immediately be reached for comment late Wednesday.

CCCC International Holding Ltd. (CCCI) is a subsidiary of China Communications Construction Company Ltd. (CCCC).

A representative of CCCI said Wednesday that it had no immediate comment about Ottawa’s decision to block the takeover.

The Chinese government had been highly supportive of the potential Aecon takeover.

It remains to be seen how Ottawa’s decision will be received by Beijing and how it could affect Canadian-Chinese relations.

Last month, China’s ambassador to Canada defended the proposed deal. Lu Shaye said there was no reason for concern about the acquisition of Aecon because the Chinese side was strictly focused on business and market interests.

WATCH: MPs raise red flag over sale of Aecon to Chinese-owned company (Feb. 2018)

3:31 MPs raise red flag over sale of Aecon to Chinese-owned company MPs raise red flag over sale of Aecon to Chinese-owned company

“My first impression, to tell you the truth, (is) that I think the Canadian media or the Canadian public is too sensitive about the Aecon case because Aecon is just a construction company,” Lu said in response to a question about the takeover bid during a news conference at the Chinese embassy in Ottawa.

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“From your side, you have your rules and regulations on the foreign companies overtaking Canadian companies. I think for the national security issue it is your internal affairs. The Chinese side does not want to interfere (with) it.”

Lu, who spoke through an interpreter, added that China just wants to ensure Canada has the same standards for Chinese companies as it does for foreign companies from other countries proposing to take over Canadian firms.

An internal federal document prepared last fall described CCCC as one of the world’s largest engineering and construction firms.

The Infrastructure Canada memo said CCCC generated revenue of US$62 billion in 2016 and has core business activities that include the construction of ports, roads, terminals, bridges, rail and tunnels.

Aecon, it continued, generated revenue of $3.2 billion in 2016.

The briefing document was obtained recently by The Canadian Press under the Access to Information Act.

– with a file from Jim Bronskill