Balfour Beatty, the international infrastructure group, announced on Tuesday that it has reached an agreement to sell its Scandinavian Rail business to Strukton Rail B.V. for approximately £4 million in cash, equating to broadly net asset value.
The cash consideration will be subject to certain adjustments based on completion accounts and in relation to pension liabilities. Competition clearance has been received from the Swedish competition authority, and completion is expected in January 2014.
Balfour Beatty said that they had already stated their intention to divest all of our mainland European rail businesses and announced the sale of the Spanish business at their full-year results in March. Balfour Beatty is currently in discussion with a number of potential buyers for the German business and have started preliminary discussions for the Italian business.
Andrew McNaughton, CEO of Balfour Beatty, commented:
"I am very pleased that we have continued to execute on our stated strategy of disposing of our mainland European rail businesses. We have found a good home for the business, its customers and employees, and we continue to explore similar options for our remaining mainland European businesses."