Balfour Beatty has divested its 50% interest in Hong Kong contractor Gammon Construction to a wholly owned subsidiary of Jardine Matheson for £250m ($331m) in cash. 

The transaction gives Jardine Matheson full ownership of Gammon, which the two groups had operated as a 50:50 joint venture since 2004.  

Balfour Beatty said the disposal supports its focus on its US and UK markets under the Evolve, Energise and Explore strategy introduced in March 2026. 

The £250m consideration will be paid in three equal instalments: at completion, by 31 December 2027 and by 31 December 2028.

Balfour Beatty will retain the initial £83.3m payment as cash, with its use to be considered in the group’s year-end capital allocation review. 

Balfour Beatty group CEO Philip Hoare said: “Balfour Beatty’s investment in Gammon has been highly successful, providing a steady dividend for many years. However, in line with our profitable growth strategy, the Group is focused on the opportunities across our chosen US and UK geographies where we continue to see significant potential. 

“In this context, the Board considered potential strategic options for our shareholding in Gammon, determining that Jardine Matheson is the right buyer to consolidate ownership and fully apply their local market presence and expertise to Gammon going forward.” 

Balfour Beatty’s share of Gammon’s profit from operations was £36m in the 2025 financial year and £11m in the first half of 2026. The carrying value of its interest was £86m as of 30 June 2026. 

Gammon will be classified as a discontinued operation in Balfour Beatty’s 2026 financial statements.  

For Jardine Matheson, the deal consolidates full ownership of Gammon Construction and strengthens the company's position in the engineering and infrastructure sector.