14/11/2019 - 11:53

Monadelphous expands to South America

14/11/2019 - 11:53

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Engineering company Monadelphous has entered the Chilean market with the acquisition of two jointly-owned mining services providers, Buildtek and Maqrent.

Monadelphous expands to South America
Rob Velletri says the acquisition forms part of the Monadelphous' markets and growth strategy.

Engineering company Monadelphous has entered the Chilean market with the acquisition of two jointly-owned mining services providers, Buildtek and Maqrent.

Monadelphous acquired 75 per cent of both businesses for around $A9.5 million cash, with an option to purchase the remaining 25 per cent in three years’ time.

Monadelphous managing director Rob Velletri said the acquisition formed part of the company’s markets and growth strategy.

“The acquisition enables our entry into the growing Chilean resources market through an established and well-recognised operator,” Mr Velletri said.

Buildtek provides construction and maintenance services to Chile’s mining sector.

Maqrent provides a range of plant, machinery and equipment hire for Buildtek and external customers in the mining and construction sector including Codelco, BHP and Albemarle.

Both companies were founded in 2007 by Victor Valech, who will continue to manage and run the businesses in Chile.

Mr Velletri said Monadelphous would support both companies as they continue to grow and expand in the region.

“Today’s announcement is a result of significant efforts over a number of years to understand the South American market, and we look forward to the opportunities ahead,” Mr Velletri added.

Shares in Monadelphous were up 0.77 per cent to trade at $15.70 per share, as at 2:20pm AEDT.

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