Australia’s largest construction company, CIMIC Group, has divested half of its UGL Transport subsidiary to Japan’s Sojitz Corporation in a deal valued at $500 million. The transaction aims to bolster UGL Transport’s growth prospects and accelerate its technological advancements within the Asia-Pacific region, according to CIMIC. CIMIC will retain the remaining 50 per cent ownership of UGL. UGL specialises in providing engineering, construction, and maintenance services across various sectors including transport, resources, and power. CIMIC Group delivers various infrastructure projects and services across the construction, mining, and mineral processing sectors.
Juan Santamaria, global chief executive of CIMIC, commented that the sale aligns with the company’s strategic objectives. Sojitz, a diversified conglomerate with existing rail construction operations in India and Indonesia, views this acquisition as a strategic expansion of its Australian investment portfolio.
Sojitz has been actively increasing its presence in the Australian market. Recent investments include the acquisition of energy retailer Next Green Group last month and the purchase of infrastructure developer Capella Capital from Lendlease in January. These moves highlight Sojitz’s growing commitment to infrastructure and energy sectors within Australia.
The sale of UGL Transport to Sojitz is expected to be completed in the coming months, subject to customary regulatory approvals. The partnership between CIMIC and Sojitz aims to leverage their combined expertise to drive further innovation and expansion within the transport sector.
