Shares of SNC-Lavalin Group Inc. surged amid optimism Justin Trudeau’s election win may pave the way forward for the embattled engineering firm.
Montreal-based SNC jumped as much as 12 per cent, the most since Sept. 10, after Prime Minister Trudeau’s Liberal Party won a second term to lead Canada with a minority government. The company found itself in the middle of Canada’s biggest political crisis in years after the country’s ethics watchdog found Trudeau pushed for the company avoid a criminal trial over its dealings in Libya.
Trudeau has always said his interest in SNC’s fate was based on his desire to avoid job losses.
Prior to this week, the stock had slumped more than 60 per cent this year after the company issued three profit warnings, wrote down the value of its Middle East energy business and lost a contract in Chile valued at US$260 million.