NRW likely to purchase BGC Contracting

Civil and mining contractor NRW Holdings today confirmed it has been selected as the preferred bidder for BGC Contracting.

The announcement follows months of media speculation regarding NRW’s interest in purchasing the BGC Australia subsidiary, and an announcement from NRW in May downplaying its interest in the acquisition.

In a statement released today in response to media speculation, NRW said it had been selected as preferred bidder, adding it had multiple options available to fund the purchase, if it proceeds.

“Furthermore, any transaction would include the assumption of outstanding equipment finance obligations of approximately $190 million, which is well supported by a considerable fleet of major mobile equipment,” NRW said.

BGC Contracting has a workforce of about 2,000 across Australia and a contract pipeline valued in excess of $1.7 billion.

NRW said it would proceed with the sale in a similar disciplined manner to its acquisitions of Queensland's Golding Group and of RCR Mining Technologies.  

Last month, RCR Mining Technologies won further work at Fortescue Metals Group’s Cloudbreak iron ore mine in the Pilbara to design and construct a fifth relocatable crushing plant.

Earlier that month, Golding Contractors was awarded civil works by BHP Mitsubishi Alliance at the Blackwater coal mine in Queensland.

Shares in NRW Holdings were up 16 per cent today to trade at $2.61, as at 3:05pm AEDT, its highest share price since May.

BGC Contracting is one of several assets that BGC Australia has put on the market, including its hotels and a CBD office tower.