Skanska sells Gammon, leaves HK tunnelling

At the end of May, Skanska announced it had signed a memorandum of understanding to sell its 50% share in Gammon Skanska, the Hong Kong based construction company.

Jardine Matheson will retain its current ownership of its 50% share of Gammon, with Skanska's share being bought by Balfour Beatty Ltd. for HK$510M (US$65.4M). Due diligence is ongoing and Skanska said the sale was part of its strategy of achieving a leading position in its selected home markets.

Coming fresh on the heels of the recent offload of Cementation Skanska (T&TI, December 2003, p12), the sale has prompted questions as to whether Skanska may be pulling out of the Hong Kong tunnelling sector or even underground construction altogether.

Skanska spokesman Peter Gimbe confirmed a withdrawal from the Hong Kong and China construction markets, including tunnelling, and focusing of resources on Europe, North and Latin America. He said: "We will continue with tunnelling projects on our other home markets - Nordic Countries, UK, Central and East Europe, North America and Latin America. We have no plans to withdraw from tunnelling anywhere else."