CCCC buys John Holland

CCCC buys John HollandLeighton Holdings is selling its John Holland Group business and assets to a subsidiary of the China Communications Construction Company (CCCC), following approval by the Foreign Investment Review Board (FIRB).Leighton Holdings last year announced it had entered into a binding Share Sale Agreement with CCCC International Holding Limited (CCCI), with the deal expected to be completed in the first quarter of 2015.In a statement last week by Joe Hockey, the Federal Treasurer announced that he has signed off on the foreign investment proposal, acknowledging the global reach of both John Holland and CCCC. “The Government welcomes foreign investment where it is not contrary to our national interest,” Hockey said. “Foreign investment has helped build Australia’s economy and will continue to enhance the wellbeing of Australians by supporting economic growth and prosperity.”John Holland’s group managing director, Glenn Palin, said John Holland and CCCI are “extremely complementary” because of “a shared dedication to technical excellence and innovation, and a pride in company history and values”.”With the strength and capability of CCCI backing us, John Holland is set for a bright future in the Australian infrastructure market,” he added.Lu Jianzhong, president of CCCI, called the deal “a momentous step” for his company, a wholly owned subsidiary of CCCC, which is the fourth-largest construction company in the world by revenue and has a global presence.”We believe there are very significant growth opportunities in the Australian market, and clearly in the acquisition of John Holland we are recognising the strong leadership and solid performance of the business,” he said.”From our perspective, ownership of John Holland is the optimal way for CCCC to participate in this dynamic market as part of our aim to be a global transportation infrastructure business. It will be an important strategic addition to CCCC and we see [John Holland] as a strong independent competitor in the Australian market.”Lu Jianzhong said it will be business as usual for customers, “but with the added benefit of the resources of CCCC to support them”. He signalled the intention that CCCC will share its specialised skills with John Holland, adding that CCCC “in turn expects there will be opportunities to export John Holland’s particular skills, especially in road, rail, tunnelling and water infrastructure”.John Holland has a strong presence in South-East Asia and Hong Kong and will continue to pursue growth opportunities in these markets.