Laing O Rourke announces potential divestment of Australian business
Laing O’Rourke has announced plans to carry out a divestment process regarding its Australian business.
This announcement comes after the company reviewed, during the 4th Quarter of 2015, its business portfolio due to the fact that the firm received unsolicited approaches from a number of parties expressing interest in acquiring parts of its business, including its Australian business.
It is expected that a formal sale process will commence soon, led by HSBC Investment Bank and supported by other advisors of the company.
French construction giant Bouygues and Spain’s Ferrovial are both understood to have shown interest in acquiring the business.
Both groups expressed interest in John Holland about two years ago — the construction operation now owned by the China Communications Construction Company.
The strategic review conducted by Laing O'Rourke showed that the European business and the UK in particular was very well placed for strong growth potential. To take advantage of this opportunities the company will need make certain investments.
According to Laing O’Rourke, the European business will focus on streamlining its organization and align its structures, processes and overheads to capture the full operational efficiencies and cost benefits, which will flow from the current and future Investments in Off-site Build and advanced Digital Engineering.
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