Dutco completes Balfour Beatty buyout

Balfour Beatty has completed its exit from the Middle East construction scene after its local joint venture partner Dutco finalised the acquisition of the minority shares the UK-based contractor held in three companies – Dutco Balfour Beatty, Dutco Construction Company LLC and BK Gulf LLC.

Last month Balfour Beatty announced its intent to quit the Middle East as well as Indonesia and Australia to focus on its core markets in the UK, US and Far East. It sold its interests in the JVs to Dutco for GBP 11mn (AED 50mn).

After completing the deal Tariq Baker, CEO of UAE focused Dutco said: “Our relationship with Balfour Beatty has been very successful for over 40 years during which time we have executed many prestigious and complex projects.

“A review of the strategic objectives of the two shareholders has indicated the time was right for a new chapter to be written for the joint businesses.  This allows Balfour Beatty to focus on their target areas of operation, which no longer includes the Middle East.

He added: “Dutco is part of the original fabric of construction in the UAE and we believe we have a significant role to play in the development of the country.  There will be no fundamental change to our existing operations other than our continuous drive to become more efficient and productive in the execution of our projects.”

Baker said Dutco would look to develop new relationships within the construction sector.

“We have a strong order book and we are committed to grow the business in a controlled and focused manner,” he said.