Balfour Beatty exits Middle East with $13.7m deal
Balfour Beatty is to exit the Middle East market after agreeing to offload its shares in joint ventures, Dutco Balfour Beatty and BK Gulf, for $13.7m, according to Nasdaq.com
Balfour Beatty is to exit the Middle East’s construction market after agreeing terms to sell shares in its regional joint ventures.
The UK-headquartered construction firm has signed a deal with its local partner, Dubai Transport Company (Dutco Group), to sell its shares in Dutco Balfour Beatty and BK Gulf for $13.7m (GBP11m).
As part of the transaction, which will be subject to regulatory approval, the local partner will assume responsibility for Balfour Beatty’s guarantees of bonding obligations in the joint ventures.
The latest news means that Balfour Beatty has pulled out of the Middle East, Indonesia, and Australia since the beginning of 2015. The firm says that this strategy will enable it to focus on its chosen markets of the UK, US, and Far East.
Leo Quinn, group chief executive of Balfour Beatty, commented: “We will continue to simplify the group and strengthen the balance sheet through our Build to Last programme.
“As a result, Balfour Beatty enters phase two of its transformation with a solid foundation for long-term, profitable growth,” he added.