Construction giant WBHO bets on UK to diversify against risks
WBHO, SA’s largest construction company by market capitalisation, has invested in two UK groups as it looks to diversify against risks to its South African operations. Construction companies have been struggling to find large projects in SA, with government spending on infrastructure work having tapered off significantly over the past few years. This sent a number of companies overseas, especially to Australia and the UK, where they are building pipelines. WBHO announced on Thursday that it had acquired 60% of Manchester-based contractor Russells and 32% of Russell Homes, two family-owned businesses, for £32.8m and £3.2m, respectively. WBHO has been successful in Australia, where it has operated for 17 years, and now wants to repeat that success in the UK.
The company, with a market capitalisation of R8.8bn, has spent the past few years taking on more projects in Australia. This provides protection against a lack of work opportunities and weak economic growth in SA. Australian...
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