OHL considers potential merger with Mexican construction business

05 February 2020 - 12:00 am UTC

Spanish infrastructure developer OHL is considering a potential merger with Mexican construction company CAABSA, according to two 4 February OHL stock exchange filings.

Under the terms of the proposed merger, OHL would absorb CAABSA’s construction business. CAABSA would make a cash contributiion into the company of EUR 50m (USD 55.19m) and would take a 31-35% holding in OHL.

The owners of CAABSA are brothers Luis Fernando Martín Amodio Herrera and Julio Mauricio Martín Amodio Herrera, who founded the company in 1979.

Any deal would require the approval of Spanish market regulator the CNMV to waive CAABSA’s obligation under Spanish market regulations to carry out a public tender offer for OHL’s listed shares.

OHL has been looking for a potential financial partner since 25 October 2019, when the company announced that it had received interest from the Amodio brothers, according to the second filing.

The Mexican construction company has been carrying out due diligence on the Spanish builder, which in turn will now carry out the same on the business of its prospective partner.

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