28 Jul Canada’s SNC-Lavalin to sell South African resources business
Canadian engineering and construction firm SNC-Lavalin has entered into an agreement to sell its South African resources business as part of a corporate restructuring.
Montreal-based SNC will sell the business, which has around 1,800 employees and primarily services construction and site maintenance clients, to local management for an undisclosed price.
The transaction is expected to close in the coming weeks and is subject to conditions including approval of the exchange control authorities of the South African Reserve Bank.
The divestment follows the closure and exit in March of Valerus, a non-core, US-based oil and gas production and processing facilities business, and is a consequence of SNC’s focus on professional services and project management, in a bid to generate consistent earnings and cash flow.
“We have undergone a full review of our Resources business, and have been taking actions to align with our overall strategic direction and focus on our high potential engineering services,” said SNC’s CEO Ian Edwards.
“The sale of our South African Resources business is another important step in this direction,” he added.