A deal worth € 770 million (US$ 947 million) has been agreed by Hochtief subsidiary company Leighton Holdings for the sale of John Holland to CCCC International Holding.

The move to sell the Australian contractor to the financing arm of China Communications Construction Company comes amid a streamlining of Germany-based Hochtief’s wider business portfolio.

In October, the contractor made the decision to divest its offshore assets to marine engineering company GeoSea, as well as parting with its property companies Format and Aurelis.

The sale of John Holland is subject to approval by the Australian Foreign Investment Review. It would involve the transfer of 4,100 employees to the new business. As a result of the sale, Leighton’s annual revenues would be reduced by around € 2.5 billion (US$3.9 billion).

Marcelino Fernández Verdes, CEO of Hochtief and Leighton Holdings, said, "In June 2014 we announced that, as part of our strategic review we were analysing options for our services, property and John Holland businesses, including the potential divestment of, or introduction of new partners to, these businesses.

“The divestment of John Holland supports our focus on further reducing gearing and strengthening our balance sheet so that we can sustain competitiveness."

Proceeds will also be used to finance future growth, particularly in public private partnerships.”

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