This acquisition will bolster Webuild’s footprint in Australia.
Currently, Australia is Webuild’s second largest market, following Italy. It has an order backlog of €8.9bn in Australia.
In November, Webuild had agreed to acquire Clough. However, this $350m conditional deal fell through last week after Clough’s South African parent Murray & Roberts Holdings and Webuild could not agree on financing quick enough to ward off a collapse, reported Australian Financial Review.
With the deal failing, projects worth more than $8bn ended up facing delays.
Subsequently, Clough was placed into voluntary administration.
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Deloitte was appointed as Clough’s administrator.
According to the latest agreement, Webuild will buy a base perimeter comprising offices and a brand of Clough and its share in Australia’s biggest hydropower project Snowy 2.0 and Inland Rail contracts, for a total value of $12.09m.
The latest deal has given Webuild an exclusivity period until 21 December to sign a final agreement.
This deal offers an option to include other projects if conditions are guaranteed.
Last week, Webuild had provided funds for payment of wages to Clough’s employees involved in Snowy 2.0, reported Reuters.
Set up in 1919, Clough has a workforce of around 2,500 employees.
In a statement, Webuild said: “The transaction will allow Webuild to bolster its local organisation, engineering expertise and workforce, which is instrumental to the execution of its order backlog and commercial plan.”