Latin America: Skanska has left the building

Swedish contracting giant Skanska has now left Latin America completely with the sale of its business in Peru.

The company announced yesterday that it had divested Skanska Peru to a subsidiary of Confipetrol Group for approximately $25m.

The transaction will be recorded in the Central stream and will not have any material result effect, Skanska said.

Skanska Peru is the last part of former Skanska Latin America to be divested. Earlier this year, Skanska completed its last engineering and construction project in Latin America.

Skanska said in July 2014 that it planned to exit Latin America after recording a second-quarter charge of SK500m (approximately $59m today) related to two power plant projects in Brazil and a petrochemical plant project in Argentina.

By the end of 2014 losses in Latin America had reached SEK800m ($93m today) in the form of writedowns and restructuring provisions.

Skanska’s Peru announcement came as Brazil’s official statistics agency revealed that Brazilian gross domestic product (GDP) shrank 3.8% in 2015, amid a political crisis, rising inflation and a fall in oil and other commodity prices.

Confipetrol Group, meanwhile, provides maintenance and operations services to the oil and gas, mining, power and industrial sectors in Colombia, Peru and Bolivia.

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