Al Habtoor Engineering and Leighton Holdings have agreed to join forces to serve the construction industry in the region. Al Habtoor – Leighton will immediately become one of the region largest multi-disciplined contractor. In this landmark transaction, Leighton Holdings will merge its Leighton International operations in the Arabian Gulf with Al Habtoor Engineering and acquire a 45% stake in Al Habtoor Engineering.
Speaking of the partnership, Mr. Khalaf Al Habtoor, Chairman of Al Habtoor Holding, said “Adding Leighton’s expertise to our own knowledge and experience will enable Al Habtoor Engineering to provide the broadest spectrum of construction services, which will further enhance our competitive edge and leadership position”.
Mr. Riad T Al Sadik, Managing Partner of Al Habtoor Engineering, added “This is a key strategic move that lays strong foundations for the expansion of both Al Habtoor Engineering and Gulf Leighton in the broader region. The combined resources of Al Habtoor Engineering and Leighton will create one of the strongest construction platforms in the region”.
Chief Financial Officer of Leighton Holdings, Mr. Scott Charlton, said he was delighted to be aligning the Leighton Group with Al Habtoor Engineering, one of the leading construction contractors in the Gulf. “Al Habtoor is regarded as one of the leading builders in the region. Their track record in large-scale building projects is second to none and this complements our expertise in large-scale civil infrastructure projects,” said Mr. Charlton.
Managing Director of Leighton International, Mr. David Savage, said that Leighton’s presence in the Gulf construction market would now be substantially strengthened.
“Since establishing Gulf Leighton just over two years ago, we have secured a number of iconic projects including the Al Shaqab equestrian centre in Doha, Qatar and the Saadiyat Island Expressway in Abu Dhabi. Leighton International has developed a considerable presence in the Gulf region in its own right but this investment provides us with a quantum leap in one of the world’s fastest growing construction markets,” said Mr. Savage.
“The partnership with Al Habtoor provides us with the increased capacity we require to really capitalise on the huge number of opportunities available. The unique strengths that each company brings will enable all parts of Al Habtoor-Leighton to grow and produce strong results. Al Habtoor has a highly qualified, experienced and professional team with a multi-national workforce in excess of 25,000 employees, and market-leading capability in major building projects,” he said.
The consideration paid by Leighton for the 45% stake includes cash and the contribution of Gulf Leighton’s assets. The transaction values Al Habtoor Engineering at AED 7 billion.
EFG-Hermes acted as sole financial advisor to Al Habtoor Engineering on the transaction.
