Balfour Beatty has agreed a deal to sell its half of loss-making Dutco Balfour Beatty and BK Gulf to Dubai Transport Company (Dutco) for £11m cash.
As part of the transaction, which is subject to regulatory approval, Dutco will assume responsibility for Balfour Beatty’s guarantees of bonding obligations in the joint ventures.
Dutco Balfour Beatty LLC was originally established in 1976 when Dubai Transport Company and Balfour Beatty teamed up for the mega Mina Jebel Ali construction project.
BK Gulf, established in 1978, is the building services and M&E joint venture between Balfour Beatty and Dutco.
Balfour Beatty owned 49% in each business. Its 2015 annual report shows that the two Dutco JVs generated £372m revenue but made a pre-tax loss of £65m.
Since the start of 2015, Balfour Beatty has now exited the Middle East, Indonesia and Australia in order to focus on its chosen markets, in the UK, US and Far East.
Group chief executive Leo Quinn said: “We continue to simplify the group and strengthen the balance sheet through our Build to Last programme. As a result, Balfour Beatty enters phase two of its transformation with a solid foundation for long term profitable growth.”
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