Jardine Matheson takes full control of Gammon in £250M deal
What's the deal? Jardine MathesonDealroom has a profile for this one. Try Dealroom → said Tuesday it has acquired the remaining 50% stake in Gammon Construction from Balfour BeattyDealroom has a profile for this one. Try Dealroom → for £250 million, giving the Hong Kong-based investment company sole ownership of the construction and engineering firm.
The terms: Jardine Matheson will pay Balfour Beatty in three equal tranches on Tuesday, December 31, 2027, and December 29, 2028. The acquisition includes all future dividend entitlements and cash on the balance sheet, with no post-closing adjustments.
Why now? Jardine Matheson has been invested in Gammon since 1969. The deal consolidates control of a long-held asset and folds it fully into the company's Jardine Engineering & InfrastructureDealroom has a profile for this one. Try Dealroom → vertical.
What's the endgame? Chief executive officer Lincoln Pan called the deal "a strategic, synergistic expansion" of that vertical, adding the goal is "doubling the earnings of JE&I in the coming years." The company said the acquisition "enhances growth and scale" and is expected to be "modestly accretive from its first year."
Also in the news: Jardine Matheson lifted its guidance for full-year 2026, now expecting underlying earnings per share of $5.50 to $5.65, up from previous guidance of $5.33. That represents growth of 3% to 6% over 2025, which it said reflects "continued solid performance across the portfolio in the first three quarters of 2026."
Market reaction: Jardine Matheson shares opened 0.5% lower at $55.53 in Singapore on Tuesday morning. Balfour Beatty shares closed up 0.6% at 881.00 pence in London on Monday.
The signal: The transaction is Jardine Matheson's second significant deal of 2026, signalling a push to expand controlled earnings and capabilities across Asia through its engineering and infrastructure arm.
Read more: marketscreener.com
Image credit: cogdogblog
