Fluor is selling half the shares in its Spanish business to Sacyr to create a new joint operation that will carry out both project management and construction work in Europe, North Africa and South America.
It has signed an agreement to divest 50% of the Fluor SA to multinational Spanish construction company Sacyr Industrial. The new entity, SacyrFluor, will be headquartered in Fluor’s Madrid operations centre. The value of the sale is €39m (£27.4m).
SacyrFluor will provide project management, engineering, procurement and construction management as well as undertaking construction services for the energy and chemicals industry in Spain, Southern Europe, North Africa and certain countries in South America.
“Creating this new company supports Fluor’s global strategy to provide clients with truly integrated business solutions for their project needs,” said David Seaton, Fluor’s chairman and chief executive officer. “Combining Fluor’s project management, engineering and procurement services with Sacyr’s construction capabilities will provide our clients with capital efficiencies through a simplified project structure and improved opportunities for cost savings.”
Pedro Sigüenza, chief executive officer of Sacyr Industrial, said: “SacyrFluor is the ideal companion for Sacyr Industrial, enabling us to boost our oil and gas business and increase our capacity to take on larger engineering, procurement and construction projects.”
“Fluor and Sacyr have together successfully completed two large oil and gas projects, so we already have a track record and have gained an excellent understanding of each other’s company ethos and cultures,” said Miguel Angel Gomez, Fluor’s vice president of Energy and Chemicals and general manager for Spain and North Africa. “Together with Sacyr’s management, we are looking forward to offering our clients across the regions an improved value proposition to support their project demands.”
Sacyr is one of Spain’s largest construction companies, with 30,000 employees and operation centres in 23 countries. It revenue for 2014 was €2.9bn.
Global engineering and construction firm Fluor Corporation has 40,000 employees worldwide and the company’s revenue for 2014 was US$21.5bn (£13.8bn).
Source & Link: The Construction Index