Vinci has announced a strategic partnership with Constructora Conconcreto, a Colombian construction and real estate development firm.
This partnership is subject to finalisation of the agreements and the customary closing conditions. It will take the form of a cooperation agreement primarily focused on Colombia's major infrastructure projects going forward. It will have the benefit of Vinci's expertise in concessions and contracting and can result in the establishment of dedicated joint ventures in the various business activities concerned.
The partnership will also involve Vinci's acquisition of a 20% stake in Constructora Conconcreto via a reserved capital increase.
Constructora Conconcreto is Colombia's second-largest construction and property development group, with €320 million of revenue in 2014 and 4,800 employees.
Vinci's Chairman and Chief Executive Officer, Xavier Huillard, stated:
"This agreement is a further illustration of the Vinci's expansion strategy in countries with high growth potential. Vinci is very proud to be associated with, and to bring its expertise to, an acknowledged leader in the Colombian construction and property development sector. This partnership will enable the Group to take part in and support Colombia's ambitious infrastructure development programme."
Vinci's ambition is to establish long-term roots in Colombia, one of the most dynamic countries in South America. For about a decade, the country has regularly recorded annual GDP growth in excess of 4%. The construction sector is particularly promising, with volume expected to increase by 5% annually in coming years.