SALE OF BALFOUR BEATTY’S SHAREHOLDING IN GAMMON

Balfour Beatty PLC

13 October 2026

 

News Release

SALE OF BALFOUR BEATTY’S 50% SHAREHOLDING IN GAMMON CONSTRUCTION TO JARDINE MATHESON

Balfour Beatty plc (“Balfour Beatty” or the “Group”) announces that it has sold its 50% shareholding in Gammon Construction (“Gammon”), the Hong Kong based contractor, to a wholly-owned subsidiary of Jardine Matheson Holdings Limited (“Jardine Matheson”), its joint venture partner, for a total cash consideration of £250 million (the “Transaction”).

Highlights

• In line with the Evolve, Energise and Explore strategic framework, the Transaction will enable the Group to focus further on its core US and UK geographies
• A natural conclusion to a successful partnership, enabling Jardine Matheson as 100% owner to fully apply their local market presence and expertise to Gammon going forwards
• Total cash consideration payable in GBP in three equal tranches; on completion today, by 31 December 2027 and by 31 December 2028
• First tranche of £83.3 million to be retained as cash and included in Balfour Beatty’s year-end capital allocation review, which will be confirmed as usual at the Group’s 2026 full year results

Philip Hoare, Balfour Beatty Group Chief Executive, said: “Balfour Beatty’s investment in Gammon has been highly successful, providing a steady dividend for many years. However, in line with our profitable growth strategy, the Group is focused on the opportunities across our chosen US and UK geographies where we continue to see significant potential.

“In this context, the Board considered potential strategic options for our shareholding in Gammon, determining that Jardine Matheson is the right buyer to consolidate ownership and fully apply their local market presence and expertise to Gammon going forwards.

“We thank Jardine Matheson and the Gammon management team for their strong strategic partnership and wish the business and all its employees continued success in the future.”

Background to the Transaction

Gammon is a leading Hong Kong based contractor, with strong capabilities across both civil infrastructure and building construction. It has been held as a 50:50 joint venture between Balfour Beatty and Jardine Matheson since 2004.

In March 2026, Balfour Beatty launched Evolve, Energise and Explore, a strategic framework for its next phase of profitable growth. The framework is focused on strengthening the core business, accelerating profitable growth in markets where Balfour Beatty has a strong proposition and shaping what’s next through adjacencies, innovation and future growth opportunities

Following discussions with Jardine Matheson regarding the long-term ownership of Gammon, the Board decided to proceed with a sale of the Group’s shareholding to Jardine Matheson on appropriate terms.

The acquisition enhances the scale of Jardine Matheson’s new strategic pillar (Jardine Engineering & Infrastructure) and enables Jardine Matheson to apply its local market presence and expertise to drive Gammon forward as a wholly-owned business.

Further Details

Balfour Beatty’s 50% share of Gammon’s profit from operations was £36m for the full year 2025 and £11m for the half year 2026. Balfour Beatty’s carrying value of its 50% share in Gammon as at 30 June 2026 was £86m. Gammon will be reported as a discontinued operation in the Company’s 2026 financial statements.

This announcement contains inside information for the purposes of Article 7 of the UK Market Abuse Regulation. The person who arranged for the release of this announcement on behalf of the Company is Stephen Williams, Company Secretary.

ENDS

Investor and analyst enquiries:

Jim Ryan

Head of Investor Relations

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Media enquiries:

Louise McCulloch

Chief Communications & Corporate Affairs Officer

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Legal Entity Identifier: CT4UIJ3TUKGYYHMENQ17

BofA Securities is acting as financial adviser to Balfour Beatty in connection with the Transaction. Hogan Lovells Cadwalader is acting as legal adviser to Balfour Beatty.

Notes to editors:

• Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. We deliver the complex, critical infrastructure that keeps economies moving and communities connected.
• We finance, develop, build, maintain and operate essential infrastructure, combining deep engineering and construction expertise with long-term investment capability.
• For more than a century, we have shaped landmark infrastructure around the world. Today, our teams are delivering and managing major projects across our core markets, including operating and maintaining the M25 and its key arterial routes; helping to deliver Hinkley Point C, the UK’s first new nuclear power station in a generation; expanding Rolls-Royce’s Raynesway facilities in Derby to support the UK’s submarine programme; and delivering Knox Street in Dallas, Texas, a major mixed-use development transforming one of the city’s most vibrant neighbourhoods.

IMPORTANT NOTICE

Certain statements contained in this announcement may constitute "forward-looking statements" with respect to the financial condition, performance, strategic initiatives, objectives, results of operations and business of the Group. All statements other than statements of historical facts included in this announcement are, or may be deemed to be, forward-looking statements.  Without limitation, any statements preceded or followed by or that include the words ''targets'', ''plans'', ''believes'', ''expects'', ''aims'', ''intends'', ''anticipates'', ''estimates'', ''projects'', ''will'', ''may'', "would", "could" or "should", or words or terms of similar substance or the negative thereof, are forward-looking statements.  Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; and (ii) business and management strategies and the expansion and growth of the Group's operations. Such forward-looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results, performance or achievements to differ materially from those projected or implied in any forward-looking statements. The important factors that could cause the Group's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, economic and business cycles, the terms and conditions of the Group's financing arrangements, foreign currency rate fluctuations, competition in the Group's principal markets, acquisitions or disposals of businesses or assets and trends in the Group's principal industries.  Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur. The forward-looking statements contained in this announcement speak only as of the date of this announcement.

Cautionary Statement

This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction.

Important Notices Relating to the Financial Advisers

Merrill Lynch International ('BofA Securities'), a subsidiary of Bank of America Corporation, which is authorised by the Prudential Regulation Authority (the 'PRA') and regulated by the Financial Conduct Authority (the 'FCA') and the PRA in the United Kingdom, is acting exclusively for Balfour Beatty in connection with the matters referred to in this announcement and for no one else and will not be responsible to anyone other than Balfour Beatty for providing the protections afforded to its clients or for providing advice in relation to the matters referred to in this announcement. Neither BofA Securities, nor any of its affiliates, owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of BofA Securities in connection with this announcement, any statement contained herein or otherwise.

 

END