http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.14Change: -0.31
R/$ = 14.91Change: -0.30
Au 1278.12 $/ozChange: -9.13
Pt 1054.50 $/ozChange: -13.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 16, 2009

SA, Australian consultancies merge to form ‘top 60’ global engineering force

Back
Aurecon CEO Paul Hardy explains the rationale for the three-way merger that created the company in a conversation with Engineering News Editor Terence Creamer. Cameraperson: Lizelle Cronje. Editing: Darlene Creamer. (16/3/2009)
 
 
 
Expertise|Africa|Building|Consulting|Engineering|Eskom|Mining|Power|PROJECT|Projects|Resources|transport|Water|Africa|Energy|Services|Environmental|Infrastructure
Expertise|Africa|Building|Consulting|Engineering|Eskom|Mining|Power|PROJECT|Projects|Resources|transport|Water|Africa|Energy|Services|Environmental|Infrastructure
expertise|africa-company|building|consulting-company|engineering|eskom|mining|power|project|projects|resources|transport|water|africa|energy|services|environmental|infrastructure



Two leading South African consulting engineering companies officially merged with one of Australasia’s largest infrastructure advisory companies on Monday to form a new global ‘top 60’ professional technical services group, with a combined revenue of $650-million.

The new company, called Aurecon, emerged as a result of a three-way merger of the capital and skills bases of Connell Wagner of Australia, with those of Africon and Ninham Shand, of South Africa, to form a new 6 700-employee entity, with 87 offices in 27 countries.

Aurecon would be headquartered in Singapore, and would seek to position itself as a large-project specialist across the infrastructure milieu, from transport to energy.

It saw particular opportunity in Africa’s power market and hoped to emerge as an “A-list” adviser to South Africa’s power utility, Eskom, which was pursuing a R385-billion, five-year expansion programme.

While the current global economic crisis had reduced market visibility in certain sectors, particularly in building and resources, the new company also saw potential upside as a result of the unprecedented response from governments, given that many of them had placed infrastructure at the centre of their economic stimulus proposals.

Aurecon would remain privately owned by its 600 invested partners and there was no intention to take the company public. But South Africa’s black economic-empowerment imperatives had reportedly been recognised and incorporated into the final ownership model.

On a pro forma basis, Connell Wagner contributed some 70% of the combined revenue to the merger entity, with the South African partners offering the balance, positioning the new entity in the top 60 of the yearly Engineering News-Record league table of international consulting engineering and architectural groups by turnover.

GERWEL TO CHAIR NEW GROUP
Its chairperson would be South Africa’s Prof Jakes Gerwel, who played  the role of DG in former President Nelson Mandela’s government and who currently occupies several high-profile nonexecutive board positions, including the chairpersonship of South African Airways.

Paul Hardy, previously the CEO of Connell Wagner, would be the company’s inaugural global CEO, while Africon’s former CEO, Dr Gustav Rohde, had been appointed CEO responsible for Europe, the Middle East and Africa (AME). The previous MD of Ninham Shand, Arnie Möhr, would assume the role of deputy chairperson for the so-called AME zone.

The new entity would seek to participate in large-scale integrated infrastructure projects across the AME region, as well as the Asia Pacific.

Speaking at a launch function in Johannesburg, Hardy stressed that the consolidation, which had taken some 11-months to consummate, was a “merger of equals” and that it would enable the group to offer a broader range of expertise across continents.

Currently, the transport, building, mining and industry, and environmental market segments contributed about 20% each to the combined entity’s fee income, with the balance arising primarily from the power and water segments.

ORDER BOOK STILL STRONG
Hardy said that the global company still had a solid order backlog, while Rohde indicated that the order book for the AME region gave it comfort for the next 9-month to 12-month period.

Rohde indicated that Aurecon would be four times larger than its nearest South African rivals, which included firms such as Stewart Scott, BKS and Kwezi-V3.

Meanwhile, Hardy argued that the group’s newfound critical mass would position it to bid for far larger projects, including the power-related work in Africa that in recent times had gone to European and American consultancies.

Approval for the formation of Aurecon had been provided and is unopposed by the South African Competition Commission.

Hardy also stressed that no jobs would be shed as a direct result of the merger, stressing that there had been very few points of overlap between the three merging partners.

“This was a merger made in heaven,” Hardy quipped, arguing that no thought had been given to calling it off as a result of the global economic meltdown.

 

 

 

Edited by: Terence Creamer
Creamer Media Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Article contains comments
Updated 7 hours ago State-owned electricity utility Eskom this week claimed that there had been a steady improvement in the energy availability factor (EAF) at its power stations, reporting “preliminary figures” indicating an EAF of 76.37% from the start of its financial year to May 3,...
US Democratic presidential front-runner Hillary Clinton on Monday began a two-day tour through rural, traditionally coal-reliant parts of the eastern Appalachian region, where Republican rival Donald Trump's pro-coal, anti-trade message has resonated with...
Article contains comments
More
 
 
Latest News
Brenda Berlin
Updated 2 hours 35 minutes ago Platinum mining company Impala Platinum (Implats) has secured a court order against a US platinum recycler, from which it is claiming $201-million. Implats said on Wednesday that the order, issued by the US District Court for the Eastern District of Pennsylvania,...
Andrew Hinkly
Updated 3 hours ago A potentially far-reaching step has been taken towards the viable roll-out of hydrogen refuelling infrastructure for platinum-using fuel cell electric vehicles (FCEVs) with the launch of a system that allows hydrogen to be stored and transported in conventional fuel...
Johannesburg mayor Parks Tau
Updated 3 hours ago At least R14-billion in investments had seen the economic development of the City of Johannesburg, resulting in economic hubs that created jobs and further opportunities for the city’s citizens, mayor Parks Tau said on Wednesday. The city had begun redesigning the...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149