Salini and Impregilo agree strategy

Italian contractor Salini has reached a collaboration agreement with its takeover target Impregilo, after a protracted battle to gain control of the company.

Both companies will embark on joint commercial strategies in domestic markets and international markets, and will submit joint bids for larger and more complex projects.The companies said they expected to benefit from synergies in procurement, as well as optimising investments and pursuing greater efficiency in their commercial structures.

They estimated that, working together, both contractors could take in additional new project orders worth up to €6.4 billion between 2013 and 2017.

A Committee for the Strategic Agreement will be established, including the CFOs of each contractor, and both companies will also jointly appoint an Italian coordinator of projects and a foreign coordinator of projects. However, some degree of autonomy will remain, and each contractor is also free to pursue contracts on its own or in collaboration with other partners.

The agreed strategy for commercial and organisational collaboration between the boards of both companies comes after Salini gained control of Impregilo's board in July and parachuted in Pietro Salini as the new CEO. Mr Salini, who abstained from voting in both board of directors meetings, is also the head of Salini Group, which has built up a 29.7% stake in Impregilo.

Impregilo highlighted the fact that the collaboration agreement does not constitute a merger agreement.

Mr Salini said, "The agreement lays the foundation for the creation of a true national champion in the construction sector, which is vital to the national economy, which will create new employment opportunities for young people in Italy and in the countries in which we are called to work."