Webuild has US$12 billion Australian order backlog after acquisition
By Andy Brown03 February 2023
The contractor Webuild has acquired the assets of Clough Limited, an Australian-based engineering and construction company that had entered administration following financial difficulties.
Webuild has signed a contract with the Deloitte Administrators of Clough and will inherit the company’s more than €4 billion (US$4.3 billion) worth of projects in backlog and related project workforce. Clough’s 1,100 workers will move over as part of the transition.
The deal means that Webuild has a total order backlog in Australia, including preferred bidder projects, of more than €12 billion (US$13 billion) and has approximately 3,000 employees, making it one of the largest construction players in the country.
The current projects included in the transaction are amongst the most important infrastructure projects in Australia and Papua New Guinea. The agreement will allow the delivery for all levels of government, local communities and businesses involved. The transaction also ensures subcontractors and suppliers contracted to projects within the perimeter will be paid to complete their contracted works.
Webuild is constructing essential infrastructure in Australia; it will take part in the construction of the Sydney Metro-Western Sydney Airport project that connects the city to the new airport as well as working on the North East Link, the missing section of Melbourne’s beltway. It is part of the consortium that is the preferred bidder for the construction of a section of Inland Rail, designed to improve freight transport between Brisbane and Melbourne and the Group is working on Snowy 2.0, the largest hydropower project in the country.
The total value of the transaction is approximately AU$35.9 million (US$25 million). The completion of the acquisition remains subject to obtaining certain consents from third parties involved in the operation, including the approval at the second meeting of creditors expected to be held by mid-February 2023.