MILAN - Italy's biggest construction group Webuild said on Wednesday it had reached a deal with the administrators of rival Clough to acquire a set of the engineering group's assets and projects and expand its footprint in Australia.
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Webuild had agreed to buy Clough in November but the deal fell through last week as conditions of the transaction - such as the provision of collateral for a interim loan by the Italian group - were not met.
The Australian firm was subsequently placed into voluntary administration after a divestment deal by its South African parent, Murray & Roberts Holdings, leaving more than $8 billion worth of gas, power, rail and mining projects facing delays.
Deloitte was appointed as the firm's administrator and said it would kick off an accelerated sale and recapitalisation process to get projects back on track.
Under the new agreement, Webuild will acquire a base perimeter including offices and brand, Clough's share of Australia's biggest hydropower project Snowy 2.0 and Inland Rail contracts, for an overall value of $12.09 million.
The deal, which envisages the option to include other projects if specific conditions are guaranteed, granted Webuild an exclusivity period until Dec. 21 to seal a final agreement.
The Italian builder said last week it had provided funds for payment of wages to Clough's employees involved in Snowy 2.0, which is already facing a delay of nearly two years into 2028.
Webuild shares extended losses after the deal was announced and were trading down 1.8% by 0956 GMT, with a Milan-based trader citing market concerns about the deal's rationale.
"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," the group said in statement.
Australia is Webuild's second largest market after Italy with an order backlog of 8.9 billion euros, it added.
($1 = 1.4562 Australian dollars)