UK-based infrastructure group Balfour Beatty has reached an agreement to sell its Scandinavian Rail business including all current operations in Sweden and Denmark to Strukton Rail for a cash consideration of about £4m.
With this acquisition, Strukton Rail has strengthened its geographical presence within the railway industry in Sweden and Denmark.
Currently, Strukton Rail is executing major projects in Scandinavia for the Citybanan in Stockholm and the S-Bane in Copenhagen. Strukton is also responsible for the maintenance of various railway lines in Sweden.
Balfour Beatty Rail Scandinavia is involved in the installation of the ETCS infrastructure across the Fjernbane West and East lines in Denmark.
Strukton Rail Scandinavia managing director Robert Röder said: "Strukton Rail and Balfour Beatty Rail Scandinavia have been active in the same Scandinavian market for a long time. We share knowledge and expertise, but we also complement each other within some technique areas. Under a common flag we will be able to offer our customers a strong and broad range of services and products, with the aim to be one of the foremost suppliers in the rail sector in Sweden and Denmark."
Balfour Beatty CEO Andrew McNaughton said: "I am very pleased that we have continued to execute on our stated strategy of disposing of our mainland European rail businesses.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
"We have found a good home for the business, its customers and employees, and we continue to explore similar options for our remaining mainland European businesses."
In 2011, both the companies have partnered to maintain the Stambanan in Norrland (North of Sweden).
The transaction, which has been permitted by Swedish Competition Authority, is expected to close in January 2014.
Image: Balfour Beatty sells Scandinavian rail business to Strukton Rail. Photo: courtesy of Strukton Rail/Ryno Quantz.