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The Chinese state-owned firm China Civil Engineering Construction Corporation (CCECC) is considering acquiring Balfour Beatty, a British construction group.
According to sources, CCECC have sounded out industry figures about the feasibility of bidding for the company. Balfour Beatty has not disclosed any information.
The Chinese firm is reported to be in talks with the aim of making an offer for the company, which is in the middle of a group-wide turnaround.
Balfour issued six profit warnings during last months. In September last year the group appointed auditor KPMG to conduct an independent review of its Construction Services UK business. Meanwhile, merger talks with Carillion fell apart in July last year.
In September 2014 we reported that Balfour Beatty published the result of the review of the Directors' Valuation of the PPP Portfolio, as at June 2014. At that time Balfour Beatty said that a review of the PPP Portfolio has resulted in an increase in the total Directors' Valuation to £1,051 million as at June 2014. This represents a 46% increase to the total portfolio valuation as at June 2014, compared with applying the former valuation methodology. The UK portfolio valuation increased to £801 million and the North America portfolio valuation increased to £250 million.
CCECC has been developed from the earlier Foreign Aid Department of the Ministry of Railways into a large-scale state-owned enterprise for project contracting. Its business scope expands from international contracting for railway construction to civil engineering design & consultancy, real estate development, trading, industrial investment and hotel management as well.