Hochtief: Merger of subsidiary with Dubai constructor
The Australian Hochtief subsidiary Leighton International Ltd. is carrying out a merger of its companies in the Persian Gulf region with the construction firm Al Habtoor Engineering in Dubai. Leighton is investing approximately an additional €520mn to acquire 45% of the joint firm Al Habtoor-Leighton. The Board of Directors will be staffed equally by Leighton and Al Habtoor.
The merger is going to create one of the leading firms in the region. This measure is strategic in nature: Al Habtoor Engineering specializes in building contruction, while Leighton International predominantly provides know-how and contacts in the infrastructure construction area.
The new company also intends to gain a foothold in neighboring markets. The turnover expected by the new firm for the 2007/2008 business year is estimated at about €1.65bn. Leighton had attained a turnover of €85mn in the Gulf region during the business year 2006/2007.
Al Habtoor Engineering belongs to the Al Habtoor Group, which is responsible-among other projects-for the construction of the airports in Dubai and Abu Dhabi as well as for the Hotel Burj Al Arab. The billionaire Khalaf Ahmed Al Habtoor is the power behind the group.