BUSINESS HIGHLIGHTS
UK
Amec in US$ 3.2 billion
offer for Foster Wheeler
US-based engineer and contractor considering
cash and shares offer
U
K engineering consultant Amec has made an offer to acquire US-based
engineering and contracting company Foster Wheeler for UK£ 1.9
billion (US$ 3.2 billion)
The deal would see Foster Wheeler shareholders receive cash and shares
worth US$ 32 for each Foster Wheeler share they sell. If the offer is accepted,
Foster Wheeler shareholders would own 23% of the combined company.
Amec chief executive Samir Brikho said, “The combination of our two
businesses would be financially and strategically attractive. As well as
positioning us across the whole oil and gas value chain and providing scale in
our growth regions, we would expect double-digit earnings enhancement in
the first twelve months.”
Amec reported 2012 revenues of UK£ 4.16 billion (US$ 6.8 billion), while
Foster Wheeler reported 2012 revenues of US$ 3.41 billion.
The board of Foster Wheeler is considering the offer, which is also subject to
shareholder approval, and has agreed not to solicit alternative proposals until
22 February.
NIGERIA
Bribery settlement
Bilfinger SE has agreed a
US$ 32 million fine with the US
Department of Justice for breaches
of the Foreign Corrupt Practices
Act. Charges were brought because
of bribes the company and its joint-
venture partner Willbros paid to
Nigerian government officials on
the US$ 387 million Eastern Gas
Gathering System (EGGS) project.
The fine is part of a deferred
prosecution agreement.
FRANCE
Asset sales
Materials producer Lafarge has sold
its 20% minority stake in European
and South American gypsum
business Siniat – continuing a
string of asset sales. The 20% share
has been acquired by Etex for € 145
million (US$ 199 million) in cash.
INDIA
JV buyout
Contractor Leighton has acquired
Welspun’s 39.9% stake in its Indian
joint venture, Leighton Welspun,
for US$ 99 million. The deal
gives Leighton 100% ownership
of the business. The joint venture
was established in 2010, aiming
to capitalise on opportunities
in the Indian infrastructure
sector – especially public-private
partnerships. Leighton said it would
rename the business Leighton India.
UK
Competition
concerns
The UK Competition Commission
is to force Lafarge Tarmac and
Hanson, which is owned by
Heidelberg Cement, to sell some of
their cement production assets to
allow the entry of a new producer
into the market. Following a two-
year investigation into the market
for aggregates, cement and ready-
mixed concrete, the regulator said
a lack of competition competition
cost customers up to UK£ 50
million (US$ 75 million) a year.
VALUE OF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
Australian Dollar
AU$
0.47 0.594 5.85 0.697 59.0
94
12.50 30.5
3.61
9.40
1022 0.859 0.962
Brazilian Real
BRL
2.12
0.281 2.76 0.330 27.9
44.3
5.91
14.4
1.70
4.45
483 0.406 0.455
British Pound
UK£
1.68
3.56
9.8
1.17
99.4
158
21.0
51.3
6.07
15.8
1719 1.44
1.62
Chinese Yuan
CNY
0.171 0.362 0.102
0.119 10.10 16.0
2.14
5.21 0.617 1.609
175 0.147 0.164
Euro
€
1.43
3.03
0.85
8.39
84.7
134
17.9
43.7
5.17 13.49 1466 1.23
1.38
Indian Rupee
INR
0.017 0.036 0.010 0.099 0.012
1.6
0.212 0.516 0.0611 0.159 17.3 0.0145 0.0163
Japanese Yen
YEN
0.011 0.023 0.006 0.062 0.007 0.630
0.1335 0.325 0.0385 0.1004 10.9 0.0092 0.0103
Mexican Peso
MXN
0.080 0.169 0.048 0.468 0.056 4.72
7.49
2.44 0.288 0.752
82
0.069 0.0769
Russian Ruble
RUR
0.033 0.069 0.019 0.192 0.023 1.94
3.07 0.410
0.118 0.309 33.5 0.0282 0.0315
Saudi Riyal
SAR
0.277 0.587 0.165 1.621 0.193 16.373 25.973 3.467 8.453
2.61
283 0.238 0.267
South African Rand ZAR
0.106 0.225 0.063 0.622 0.074 6.278 9.959 1.329 3.241 0.383
109 0.091 0.102
South Korean Won KRW
0.0010 0.0021 0.0006 0.0057 0.0007 0.0578 0.0917 0.0122 0.0298 0.0035 0.0092
0.00084 0.0009
Swiss Franc
CHF
1.16
2.46
0.69
6.81
0.81 68.76 109.07 14.56 35.50 4.20 10.95 1190
1.120
US Dollar
US$
1.04
2.2
0.618 6.08 0.725 61.4
97.4
13
31.7
3.75
9.78 1062.5 0.893
For example US$ 1 = AU$ 1.04
Exchange rates: January 2014
BRAZIL
Construction equipment
manufacturer Zoomlion Cifa has
opened a new 22,000 m
2
production
site in Brazil, announced plans for
new sales and service subsidiary in
France and reported growth in UK
orders.
FRANCE
Bouygues has sold its
16.7% stake in road concessions
company Cofiroute to Vinci for
between
€
780 million and
€
800
million (US$ 1.05 billion to US$ 1.08
billion). Cofiroute operates 100 km
of motorways in western France and
the A86 Duplex tunnel in the Paris
region. Scheduled for completion
by the end of January, the final
transaction price will be based on
operational assumptions for 2014
and 2015.
CHINA
German foundations
equipment manufacturer and
contractor Bauer Maschinen has
opened a new production centre
in Tianjin, China. Bauer Tianjin
Technologies moved into the factory
in the Xi Qing district in Tianjin –
the new plant offers 30,717 m
2
of
production space, and employs more
than 220 staff. The plant is expected
to produce up to 90 machines for
foundation construction a year.
GERMANY
Tognum, which
produces diesel engines under the
MTU brand, has been renamed
Rolls-Royce Power Systems. The
company has been owned 50:50 by
Rolls-Royce and since March 2013.
international
construction
january-february 2014
BUSINESS NEWS
10
SWEDEN
Volvo acquires Terex hauler business
Terex has agreed to sell its rigid and
articulated hauler business to Volvo
Construction Equipment for US$
160 million.
The deal, which is subject to
regulatory approvals, includes the
Terex plant in Motherwell, UK, and
a 25.2% share of Inner Mongolia
North Hauler Joint Stock Co, which
manufactures and sells rigid haulers
under the Terex brand in China.
The acquisition will give Volvo
a range of rigid haulers from 32 to
91 tonnes capacity. The Motherwell
plant also makes three articulated
hauler models. Volvo already has
competitor machines in its range,
but says the Terex models would
give it opportunities for growth in
emerging economies.
