Spanish construction giant Ferrovial is looking to sell its global services division, which includes UK subsidiary Amey, as the company seeks to focus on transport infrastructure
Investment bank Goldman Sachs has been appointed to oversee the sale of “part or all” of Ferrovial’s global services business, according to the Financial Times. The infrastructure giant is aiming to hone its focus on transport infrastructure, including its profitable toll roads business in North America, according to sources close to the company.
Ferrovial has appointed external advisers “to explore the possibility of divesting part or all of the assets of the Services division that the company owns directly or indirectly”, the company said. These assets include UK highway maintenance contractor Amey.
Amey has been affected by severe losses on a deal to maintain and improve 2,500km roads and bridges in Birmingham ahead of the 2022 Commonwealth Games. A £48m loss on the M8 motorway upgrade in Scotland also hit the group’s construction earnings last year. One analyst said that Amey was “unlikely to garner a rush of buyers given the signals sent out by the industry”.
Ferrovial posted a net loss of €72m (£64m) for the first half of 2018 because of €237m (£210m) allocated for losses on Amey’s highway maintenance contract with Birmingham City Council. The group has also lost £48m on its M8 motorway upgrade contract in Scotland.
Amey was taken over by Ferrovial in 2003 for £81m. In 2006 it took over airport operator BAA for £10bn. In 2013 it paid £385m to acquire Enterprise, which it merged with Amey to increase its size.