Colombia: Vinci buys stake in Colombian construction leader

Colombia’s Financial Superintendence has announced a proposed merger agreement between Conconcreto, one of Colombia’s leading construction and infrastructure firms, and French construction giant Vinci. The merger, estimated at some $290 million dollars, would see the French entity acquire up to 20% of Conconcreto’s capital shares and is expected to be completed within 5 months.

Juan Luis Aristizábal, Conconcreto’s president, declared that some bureaucratic procedures must first be cleared, such as receiving the Superintendence’s approval, as well as from the company’s own shareholders. The proposal has already been cleared by company directors in anticipation of getting the necessary legal clearances.

Colombia’s competition watchdog considers this as part of an effort to consolidate an informal alliance that will allow both companies to better compete in infrastructure projects, with which Vinci is very familiar. Thus, the French and Colombian enterprises will try to increase their market share in the construction sector.

Source: La República

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