Jardine Matheson takes full ownership of Gammon in $2.61b deal

Balfour Beatty’s 50% stake will be paid for in instalments through December 2028.

Jardine Matheson has acquired Balfour Beatty’s 50% stake in Gammon Construction for about $2.61b (GBP250m), making it the sole owner of the Asian construction and engineering company with immediate effect.

The cash consideration will be paid in three equal tranches: at completion on 13 October 2026, on 31 December 2027, and on 29 December 2028.

The transaction is expected to modestly increase Jardines’ earnings from its first year, with no post-closing price adjustments.

The acquisition expands Jardine Engineering & Infrastructure (JE&I), a strategic business platform announced by Jardine Matheson in June.

The platform combines two wholly owned businesses, Gammon Construction and Jardine Engineering Corporation, with two joint venture assets, Jardine Schindler and Hong Kong Air Cargo Terminals.

JE&I, led by Kevin O’Brien, former CEO of Gammon Construction and Jardine Engineering Corporation, aims to grow through targeted acquisitions that create synergies across its businesses.

“Gammon Construction marks our second significant transaction in 2026,” said Lincoln Pan, CEO of Jardine Matheson, describing the deal as a strategic expansion of its engineering and infrastructure business.

Pan said the group aims to double JE&I’s earnings in the coming years through investments that expand its controlled earnings and capabilities across Asia.

Jardines has been an investor in Gammon since 1969. Pan said the acquisition reflected the group’s continued commitment to the construction company and Hong Kong.

O’Brien said Gammon had strong customer relationships, a solid reputation and opportunities to expand in Hong Kong, Singapore, and the wider region.

In Hong Kong, he cited potential projects such as Northern Metropolis. He also identified regional demand for infrastructure supporting artificial intelligence, energy, and sustainable solutions, alongside accelerating industrialisation across Asia.

Gammon has delivered projects across Hong Kong, Singapore and the wider region, spanning transport, energy and education infrastructure, data centres, Grade A offices, retail developments, integrated resorts, and residences.

(GBP1 = HK$10.42)