Australian authorities approve China Communications’ $880m takeover of John Holland

The US$880m sale of Leighton subsidiary John Holland to China Communications Construction Company International (CCCC) has been approved by the Australian government.  

Australia’s Foreign Investment Review Board has determined that the takeover is in the country’s interests. Australian Treasurer Joe Hockey said in a press release: “Foreign investment has helped build Australia’s economy and will continue to enhance the wellbeing of Australians by supporting economic growth and prosperity. 

“Appropriate arrangements have been put in place to mitigate any concerns in relation to this issue and I am satisfied that this investment is not contrary to our national interest.” 

The deal was announced last year but was subject to regulatory approval. 

John Holland is one of Australia’s largest construction companies and employs 5,600 people in eight countries. It has been fully owned by Leighton since 2007. It has been involved in many high profile construction projects, including Australia’s Parliament House in Canberra (pictured). 

CCCC is the world’s fourth largest building company by revenue, with a turnover of $54bn and a market capitalisation of  $19.5bn. It now becomes the third largest construction firm in Australia, after Leighton and Lend Lease. 

Spain’s Ferrovial was originally tipped to make a bid for John Holland. 

Image: John Holland’s Parliament House in Canberra (Wikimedia Commons)