(Alliance News) - Webuild Spa announced Friday that it has signed a contract to purchase Clough Ltd, taking over EUR4 billion of backlog and securing 1,100 jobs.

The integration of Clough into Webuild will create a group that is among the largest players in Australia and among the most historic. The projects included in the acquisition scope are among the most important infrastructure projects under construction in Australia and Papua New Guinea, and the agreement reached between Deloitte and Webuild facilitates their delivery for the governments, local communities, and businesses involved.

The deal also ensures that all subcontractors and suppliers contracted for the projects included in the scope are regularly paid for the completion of the work.

The transaction will enable Webuild to strengthen the organizational, engineering and workforce structure in Australia, which are functional for the execution of the major works in the portfolio and the business plan. Webuild will benefit from a booming market with hundreds of billions of investments expected in the coming years. The former Salini Impregilo will also be able to acquire a local facility with more than 100 years of history, deep Australian roots and traditions

Still, the deal will enable Webuild to benefit from economies of scale and significant synergies through the enhancement of Clough's central resources specializing in commercial planning, bid preparation, human resources management, procurement management, administration, finance and control; and to expand and diversify Webuild Group's activities by leveraging Clough's expertise, good market positioning and solid reputation in sectors such as Energy, Installations and Defense.

The total value of the transaction is approximately AUD35.9 million, or EUR23.4 million. Finalization of the acquisition is contingent on obtaining certain consents from third parties involved in the transaction, including approval by the creditors' meeting, which is expected by mid-February 2023.

Webuild's stock is down 0.6 percent at EUR1.69 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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