French construction giant Vinci has announced it is acquiring electrical engineering company Cegelec from Qatari Diar Real Estate Investment Company in a £1 billion share deal.
Vinci will take Cegelec off the hands of the Qatari state-owned investment company in return for 31.5 million Vinci shares, making Qatari Diar Vinci’s second largest shareholder after its employee savings fund.
Qatari Diar, who are helping to fund the development of the 310m Shard in London, will be required to keep its stake in Vinci at between 5 per cent and 8 per cent for three years.
In a statement Vinci said the acquisition of Cegelec would enable it to expand its energy division in a sector that is set to post consistent growth rates in excess of GDP.
Paris-based Cegelec generates annual revenue of about £2.6 billion.
More than half its sales come from power production, transmission and distribution, but it also is active in climate control and mechanical engineering, automation, and instrumentation and control, among other things.