Balfour Beatty plc (LON:BBY) has announced that it has sold its 50% shareholding in Gammon Construction, the Hong Kong based contractor, to a wholly-owned subsidiary of Jardine Matheson Holdings Limited, its joint venture partner, for a total cash consideration of £250 million.
Highlights
- In line with the Evolve, Energise and Explore strategic framework, the Transaction will enable the Group to focus further on its core US and UK geographies
- A natural conclusion to a successful partnership, enabling Jardine Matheson as 100% owner to fully apply their local market presence and expertise to Gammon going forwards
- Total cash consideration payable in GBP in three equal tranches; on completion today, by 31 December 2027 and by 31 December 2028
- First tranche of £83.3 million to be retained as cash and included in Balfour Beatty’s year-end capital allocation review, which will be confirmed as usual at the Group’s 2026 full year results
Philip Hoare, Balfour Beatty Group Chief Executive, said: “Balfour Beatty’s investment in Gammon has been highly successful, providing a steady dividend for many years. However, in line with our profitable growth strategy, the Group is focused on the opportunities across our chosen US and UK geographies where we continue to see significant potential.
“In this context, the Board considered potential strategic options for our shareholding in Gammon, determining that Jardine Matheson is the right buyer to consolidate ownership and fully apply their local market presence and expertise to Gammon going forwards.
“We thank Jardine Matheson and the Gammon management team for their strong strategic partnership and wish the business and all its employees continued success in the future.”
Background to the Transaction
Gammon is a leading Hong Kong based contractor, with strong capabilities across both civil infrastructure and building construction. It has been held as a 50:50 joint venture between Balfour Beatty and Jardine Matheson since 2004.
In March 2026, Balfour Beatty launched Evolve, Energise and Explore, a strategic framework for its next phase of profitable growth. The framework is focused on strengthening the core business, accelerating profitable growth in markets where Balfour Beatty has a strong proposition and shaping what’s next through adjacencies, innovation and future growth opportunities
Following discussions with Jardine Matheson regarding the long-term ownership of Gammon, the Board decided to proceed with a sale of the Group’s shareholding to Jardine Matheson on appropriate terms.
The acquisition enhances the scale of Jardine Matheson’s new strategic pillar (Jardine Engineering & Infrastructure) and enables Jardine Matheson to apply its local market presence and expertise to drive Gammon forward as a wholly-owned business.
Further Details
Balfour Beatty’s 50% share of Gammon’s profit from operations was £36m for the full year 2025 and £11m for the half year 2026. Balfour Beatty’s carrying value of its 50% share in Gammon as at 30 June 2026 was £86m. Gammon will be reported as a discontinued operation in the Company’s 2026 financial statements.
