Last month, Webuild announced that it had reached an agreement with Clough鈥檚 parent company, Murray & Roberts, to acquire the entire share capital of the company 鈥渟ubject to positive outcome of due diligence鈥�.
Webuild has now announced that the parties have 鈥渏ointly determined and agreed that there is no reasonable prospect of that acquisition proceeding through to a successful completion鈥�.
It added: 鈥淭he parties have therefore unconditionally agreed to terminate the SPA [sale and purchase agreement] with immediate effect.鈥�
Clough is one of Australia鈥檚 leading engineering and construction companies with a history going back more than 100 years. Webuild hoped that its acquisition would 鈥減rovide significant operational commercial synergies.鈥�
Webuild鈥檚 acquisition was based on the understanding that Clough currently has a pipeline of work (including preferred bids) worth around 拢4.2bn, annual turnover of around 拢860m and a debt-free balance sheet.
Webuild said it will continue to look for opportunities for growth internationally, including in the Australian market.