Peruvian engineering and construction group Graña y Montero has signed a contract to acquire 100% of the shares owned by Grupo Ferrostaal in Chilean company DSD Construcciones y Montajes for $41 million. The announcement was made by Graña y Montero's CEO, Mario Alvarado, after the subscription of the purchase agreement.

DSD Construcciones y Montajes is a well-known Chilean company that specializes in construction and electromechanical assemblies and services in the energy, oil and gas, and mining sectors. With over 19 years of history, DSD has an activity, to June 2013, of US$ 65.6 million and is currently involved in the Antucoya (Antofagasta Minerals), Los Colorados (CAP Mining) and Ministro Hales (Codelco) mining projects as well as in the maintenance of plants projects for ENAP in Concon.

Graña y Montero expects to expand its presence in the Latin American region after starting trading on the New York Stock Exchange in July 2013.

According to Alvarado, the investment of Grana y Montero in DSD constructions and Montajes, coupled with the purchase of a majority shareholding of Vial and Vives in late 2012, allows the group to strengthen its presence in Chile.

This transaction represents the third investment by Graña y Montero in Chile, following its acquisition of 74 percent of the road construction and Vives and of all the shares of Endesa Group in CAM, which provides services to the electricity sector in Chile, Colombia and Brazil.

Source: Graña y Montero