UK headquartered construction giant Balfour Beatty has sold its 50% stake in Hong Kong’s Gammon Construction to Jardine Matheson for $335m (£250m), who will now own Gammon Construction outright.
Balfour Beatty bought the 50% share in Gammon Construction from Skanska in 2004. Skanska acquired it in 2000 through its purchase of Kvaerner Construction.
Balfour Beatty said the sale is part of its “Evolve, Energise and Explore” initiative to focus on the US and UK markets.
The $335m (£250m) will be paid to Balfour Beatty in three tranches of $111.5m (£83.3m): the first immediately; the second by 31 December 2027 and final by 31 December 2028.
Balfour Beatty group chief executive Philip Hoare said: “Balfour Beatty’s investment in Gammon has been highly successful, providing a steady dividend for many years.
“In line with our profitable growth strategy, the group is focused on the opportunities across our chosen US and UK geographies where we continue to see significant potential.
“In this context, the Board considered potential strategic options for our shareholding in Gammon, determining that Jardine Matheson is the right buyer to consolidate ownership and fully apply their local market presence and expertise to Gammon going forwards.”
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