Spanish builder spends EUR 1.26bn on Hochtief stake

Actividades de Construccion & Servicios (ACS) is investing EUR 1.26 bn to acquire a 25% interest in construction company Hochtief from the company's largest investor August von Finck. Spain's biggest construction company offered EUR 72 per share for its German rival in a move to reduce its reliance on the slowing Spanish construction market.

Hochtief's shares rose 46% in the last six months on speculation that Germany's biggest builder might be a takeover target. If the deal gets approval from the antitrust authorities, Madrid-based ACS will become Hochtief's majority shareholder.

'The transaction will give ACS a platform to accelerate its international expansion,' the Spanish company said in a statement. However, 'there are currently no plans to increase the holding,' ACS's chairman Florentino Perez added.

ACS became Spain's biggest builder with the purchase of Grupo Dragados in 2003. It is the largest shareholder in Iberdrola, Spain's second largest power company, and Union Fenosa, the third largest. ACS owns a quarter of Spain's largest road operator Abertis Infraestructuras.