Dubai: The largest building company in the United Kingdom, Balfour Beatty has decided to exit the Middle East market.
The company announced on Tuesday that it has reached an agreement to sell the Group's entire share in Dutco Balfour Beatty and BK Gulf to its Dubai-based partner in order to focus on its business in the UK, United States and Far East.
A spokesperson for the company told Gulf News that the deal with Dutco is still subject to the approval from the Dubai Department of Economic Development and Dubai Municipality, which is expected shortly. The company is eyeing a total cash of £11 million ($13.7 million) from the exit transaction.
"As part of the [deal], the local partner will assume responsibility for Balfour Beatty's guarantees of bonding obligations in joint ventures," the company said in a statement.
The UK-based company had earlier racked up £21 million (Dh95 million) in pre-tax losses in June 2016.
BK Gulf, its joint venture with Dutco in Dubai is a leading contractor in the UAE and the rest of the Middle East. It has been involved in a number of projects in the region, from residential and commercial property and hotel resorts to infrastructure development and airport expansion projects.
Balfour Beatty said that since the start of 2015, it has pulled out its operations from certain markets including Indonesia, Australia and Middle East to focus on the UK, US and Far East.
Le Quinn, Group chief executive said that they continue to simplify their business and "strengthen the balance sheet" through its 'Build to Last' programme.
"As a result, Balfour Beatty enters phase two of its transformation with a solid foundation for long-term profitable growth," Quinn said.
Balfour Beatty has 34,000 employees in its payroll. It finances, develops, builds and maintains complex infrastructure such as transportation, power and utility systems, social and commercial buildings.