http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.17Change: -0.26
R/$ = 13.46Change: -0.18
Au 1141.63 $/ozChange: 0.58
Pt 1010.00 $/ozChange: 2.00
 
 
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 Contact 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)
 
 
 
Engineering|Expertise|Africa|Building|Consulting|Eskom|Mining|PROJECT|Projects|Resources|transport|Water|Africa|Energy|Services|Environmental|Infrastructure|Power
Engineering|Expertise|Africa|Building|Consulting|Eskom|Mining|PROJECT|Projects|Resources|transport|Water|Africa|Energy|Services|Environmental|Infrastructure|Power
engineering|expertise|africa-company|building|consulting-company|eskom|mining|project|projects|resources|transport|water|africa|energy|services|environmental|infrastructure|power
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
South Africa was firmly committed to adding to its nuclear energy capacity but would only sign an agreement with another country as a supplier if it was affordable and in line with local procurement rules, Energy Minister Tina Joemat-Pettersson told MPs on Tuesday....
DA MP Gordon Mackay
“In today’s sitting of Parliament’s energy committee‚ the Minister of Energy‚ Tina Joemat-Pettersson‚ shamelessly contradicted herself as to the affordability of the nuclear build programme‚” Democratic Alliance (DA) MP Gordon Mackay said on Tuesday. “The minister...
Energy Minister Tina Joemat-Pettersson on Tuesday dismissed reports that the nuclear build programme would cost R1-trillion. “I don’t know where the R1-trillion figure came from,” Joemat-Pettersson told the Portfolio Committee on Energy in Cape Town, “certainly not...
Article contains comments
More
 
 
Latest News
Updated 3 minutes ago Gas and welding company Afrox has again been contracted to supply Massbuild with liquefied petroleum gas (LPG) until 2020. The R130-million contract was the third large contract renewal announced by the JSE-listed company in recent weeks, with Afrox having also...
IchorCoal CEO Nonkululeko Nyembezi-Heita
Updated 53 minutes ago South Africa-focused coal miner Universal Coal on Wednesday reiterated its sentiments regarding the proposed takeover offer from shareholder IchorCoal, noting that it would be at the expense of Universal’s shareholders, while being highly accretive to IchorCoal’s...
Updated 1 hour 25 minutes ago The Roundtable on Sustainable Biomaterials (RSB) has certified the Solaris biofuel feedstock plant grown in South Africa and used to produce jet biofuel. Solaris is a variety of the tobacco plant, but without any nicotine and not developed through modern genetic...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96