Salini, the family owned construction firm from Italy, has increased its shareholdings in its chief competitor Impregilo. The new shareholdings is at 86.5%, offering Eur4 per share in cash for the 70% shares of Impregilo it did not own.
With the offer, the value of Impregilo jumped to Eur1.6 billion.
Salini, who currently retains control of the board of directorships in Impregilo, said that it had won acceptance for 80.8% of its offer. This is part of the plans by Salini to create a global construction player that can provide services to large to very large civil engineering projects such as roads, dams and other infrastructures in more than sixty countries.
According to CEO Pietro Salini through a statement, "Our intention is to proceed as soon as possible with the merger between the two groups in order to fully get the synergies from the integration between Impregilo and Salini."
The estimated synergies of the merger is forecasted to be in the Eur100 million range.
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