Swedish construction giant, Skanska, looks set to increase it’s share of the international market following the forthcoming acquisition of the UK’s fifth largest construction company, Kvaerner Construction. The process is currently subject to a period of confirmatory due diligence. The move, costing $244m, will also see Skanska taking over Kvaerner’s 50% holding in Gammon China Ltd, ranking the company fifth in the construction world rankings.
Claes Björk, president of CEO Skanska said: "The aquisition of Kvaerner Construction is a further significant step in our strategy to broaden our geographical market presence." He concluded: "This aquisition gives us a leading position in the UK and also a significant presence in several Asian markets and I regard it as very important for Skanska’s continued development."
Kvaerner has recently been strengthening its position in the oil and gas industry leaving Kvaerner Construction in limbo. Keith Clarke, chief executive of Kvaerner Construction was reported in the UK construction press as saying: "We’re extremely pleased, it’s what we wanted to happen, we have found ourselves a home."
But the move has prompted questions over implications of the imminent take-over on bidding for the London tunnelling contract 240 on the Channel Tunnel Rail Link Section 2. Nishimatsu Construction Co Ltd is in Joint Venture with Kvaerner Construction Ltd for the contract and is in direct competition with a JV of CostainLtd/Skanska UK Ltd/Bachy Solentanche Ltd. Lars Johansson, MD of Skanska UK Ltd told T&TI there was no issue of a clash of interests, it was unfortunate but everydody concerned was fully informed, he said: "The client is fully aware of the situation, after the bids have been submitted he can choose which route to go down."
