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CIMIC Group

From Alfawiki
CIMIC Group Limited
Company typeSubsidiary
IndustryConstruction, mining, services, public-private partnerships
PredecessorLeighton Holdings
Founded1949; 77 years ago (1949)
FounderStanley Leighton
Headquarters
Sydney
,
Australia
Area served
Australia, Asia
Key people
Verdes (chairman from 2014)
ProductsConstruction, mining, engineering services, infrastructure development
OwnerHochtief
ParentHochtief
Websitewww.cimic.com.au

CIMIC Group Limited—previously known as Leighton Holdings—is a prominent engineering-driven enterprise specializing in construction, mining, services, and public-private partnership ventures. It operates throughout the entire lifecycle of asset, infrastructure, and resource projects.

History

Established in 1949 by Stanley Leighton, the company went public on the Melbourne Stock Exchange in 1962. Its expansion into the Asian market began with the launch of Leighton Asia in Hong Kong in 1975.

In July 1983, Leighton Holdings acquired Thiess Contractors, with major shareholder Hochtief also becoming a stakeholder in Leighton. The company divested its Welded Mesh structural materials division to Smorgon Steel in April 1997.

Leighton secured a 70% ownership of John Holland in 2000, eventually gaining full control by December 2007. In February 2001, Hochtief assumed majority ownership of Leighton Holdings.

In October 2013, Fairfax Media accused Leighton of making illicit payments to win contracts in Iraq. Following this, Basil Al Jarah, Iraq country manager for Unaoil—allegedly representing Leighton—pled guilty to corruption charges.

By March 2014, Leighton Holdings came under the control of Spanish firm ACS Group through its dominant shareholding in Hochtief. In June that year, Verdes was appointed chairman of Leighton's executive board.

Leighton divested John Holland to China Communications Construction for $1.15 billion in December 2014.

The company rebranded as CIMIC Group (Construction, Infrastructure, Mining and Concessions) in April 2015.

CIMIC broadened its portfolio by acquiring mining firm Sedgman for A$256 million in March 2016 and engineering services provider UGL Limited for A$524 million in December 2016.

In November 2021, CIMIC separated its Ventia services division but maintained a 33% ownership stake.

In March 2022, following the sale of its Middle Eastern business units, CIMIC faced allegations regarding non-payment to workers and subcontractors. A court-appointed administrator from Qatar described the scenario as "a humanitarian disaster."

Hochtief increased its shareholding and commenced compulsory acquisition of remaining CIMIC shares in April 2022. Subsequently, CIMIC was removed from the Australian Securities Exchange and became a wholly owned subsidiary of Hochtief.

Structure

The CIMIC Group consists of the following subsidiaries:

  • CPB Contractors (construction)
  • Leighton Asia (construction)
  • Broad Construction (construction)
  • Thiess (mining; joint control)
  • Sedgman (mining)
  • UGL Limited (services)
  • Pacific Partnerships (development and investment)
  • EIC Activities (engineering consultancy)

Major projects

Notable undertakings by Leighton Contractors (renamed CPB Contractors in 2016) include:

Upcoming initiatives include:

  • The West Gate Tunnel project in Melbourne anticipated to finish by late 2025
  • The Sydney Metro City & Southwest extension targeted for completion by 2026

External links

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