Italian industrial group, Salini Impregilo, has green-lighted the takeover bid for their rival Astaldi and plans to revive the declining construction industry in Italy. 

Salini will be purchasing the controlling stake in Astaldi in bankruptcy proceedings for a total of EUR225 million (US$253 million). The company would raise up to EUR600 million (US$673 million) in new shares and a total of about EUR1 billion (US$1.12 billion) will be sourced from banks. To date, CDP and the banks, including Italian lenders Intesa Sanpaolo, UniCredit, and France’s BNP Paribas, have expressed willingness to negotiate with Salini over funding support. From the proceeds of EUR600 million (US$673 million) new shares, EUR150 million (US$168 million) would be set aside for the market.

Salini plans to fix Astaldi and create a new national champion in the construction sector. 

Astaldi is an international construction group headquartered in Rome. It constructs large and technologically complex infrastructure, acting primarily as EPC Contractor, but also as a concession operator. It is engaged in various infrastructure sectors, including transport, water and energy, industrial and civic buildings and operation & maintenance.