HBG merger

Dutch-based contractors HBG and Royal Boskalis Westminster have agreed to merge thereby creating a super group with a turnover of £3.5bn and two core businesses - construction and dredging.

The merger, which is subject to shareholders' agreement and approval by competition authorities in the European Union and the United States, will give the new company a market capitalisation of Euro1.2bn (£720m) and a strong balance sheet to "provide a platform for accelerated growth". No compulsory redundancies are planned.

An HBG spokesman said its UK construction activities would be unaffected by the merger and that the group will look to expand its private finance initiative portfolio both in the UK and in Europe.