Hochtief And Acs Merge North American Subsidiaries

ACS and Hochtief Merge North American Subsidiaries

Largest Construction Group in Germany and Spanish Parent Company Combine Operations

Second Largest Civil Engineering and Construction Firm in North America Created

WEB July 30 Reuters - Germanys largest construction group Hochtief and its Spanish parent ACS announced on Tuesday that they had agreed to merge their North American subsidiaries.

The merged company, which will be called Flatiron-Dragados, will become the second largest civil engineering and construction firm in North America.

ACS and Hochtief said that they had agreed to terms under which ACS Group would own 61.8% of the new company, while Hochtief would own 38.2%.

The deal is expected to close in the fourth quarter of 2024, subject to regulatory approvals.

ACS and Hochtief are publicly traded companies on European exchanges.

The merger is the latest in a series of consolidation in the construction industry, as companies look to scale up and compete for larger projects.

The combined company will have a strong presence in the United States and Canada, with a workforce of over 20,000 employees.

It will provide a wide range of services, including transportation, water, and energy infrastructure.

Conclusion

The merger of Hochtief and ACS's North American subsidiaries is a significant development in the construction industry. The combined company will be a major player in the North American market and will have the resources to compete for some of the largest and most complex projects. The merger is also a sign of the increasing consolidation in the construction industry, as companies look to scale up and compete for larger projects.