Italy’s Webuild has completed negotiations to acquire a number of additional Clough projects but has declined to specify which projects will be covered.
Italy’s Webuild has completed negotiations to acquire a number of additional Clough projects but has declined to specify which projects will be covered.
In a strangely worded announcement released late today, Webuild said it has “completed negotiations” before adding it was “close to finalising an agreement” with Clough’s administrators
The Italian company said its agreement would secure more than 1,000 jobs – out of Clough’s Australian workforce of about 1,250 people.
It added that the new terms for the acquisitions would “guarantee accretive conditions” for Webuild.
However, its announcement did not provide any details.
It followed an agreement announced on December 14, for Webuild to acquire Clough’s brand and offices and its share in the Snowy 2.0 and Inland Rail projects.
Both projects were being built in joint venture with Webuild.
The December agreement included an option to expand the scope of the transaction to include additional projects if acceptable conditions were negotiated.
“Webuild, together with Deloitte and Clough senior management, have now concluded preliminary negotiations with several key stakeholders to expand the scope of the transaction to additional projects that will benefit from amended contractual terms,” Webuild said today.
“Webuild and Deloitte as Clough’s administrators will continue to engage with stakeholders during the coming weeks to finalise the agreements and satisfy outstanding conditions in order to complete the overall transaction.”
Webuild said more details on the scope of the transaction and its completion would be provided in the coming days.
Today’s update comes shortly after Spanish construction giant ACCIONA took over the $165 million Stephen Avenue project in Perth.
That followed a decision by project proponent Main Roads WA to exclude Clough.
The future of Clough’s other big WA project - the $750 million Waitsia gas development in the Perth Basin – remains unclear.
The project’s joint owners Mitsui & Co and Beach Energy welcomed Webuild’s commitment to strengthen its presence in Australia.
“The joint venture is unable to make specific comments on the commercial arrangements between Clough’s administrators and the joint venture, as these are commercially confidential,” they said in a statement.
They added they had been working closely with Webuild and the administrators from Deloitte.
“The joint venture will continue talks with Webuild and will assess all options available to achieve the best possible outcome for the project, and importantly, the workers and subcontractors.”
Mitsui and Beach have previously said they provided additional funding to ensure work on the project continued.
A third WA project affected by Clough’s administration is Perdaman’s proposed $US4.2 billion urea project in the Pilbara.
A joint venture comprising Clough and Italian company Saipem signed a $US2.7 billion contract in May for the engineering and construction of the urea plant and associated infrastructure.
