Italian contractor Webuild has struck a deal with administrators to purchase the Australian business of embattled engineering and construction group Clough.
The $17.6 million agreement will hand Webuild control of the Snowy 2.0 pumped hydro and east coast Inland Rail projects.
Webuild had partnered with Clough on those projects before the Perth-based company entered voluntary administration earlier this month.
Under the deal announced late on Wednesday, Webuild will take on Clough’s Australian business including its offices and local workforce of about 1250 staff.
Clough has also around 1250 staff working on projects overseas.
Webuild’s decision to pull out of an earlier purchase deal which would have included a $30 million funding injection was the catalyst for Clough’s parent company Murray & Roberts calling in administrators.
The new deal would allow Webuild to bolster its local organisation, engineering expertise and workforce, the company said in a statement.
Webuild must finalise the deal, which also provides the option of taking over other projects for an additional cost, by December 21.
Clough’s other projects include the Waitsia gas project in Western Australia’s midwest. It was also slated to partner in the design and construction of Perdaman’s $6.5 billion proposed urea plant in the Pilbara.
The company had flagged it needed working capital after cost overruns on projects including Waitsia, a joint venture between Beach Energy and Mitsui.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
