News on 29 August 2000

Anglo-Norwegian Kvaerner has sold its building and engineering activities to Skanska, including a 50% shareholding in Hong-Kong based Gammon Construction, for Nkr4.7bn (£357m).

Kvaerner will receive Nkr2.3bn (£174m) in cash from Skanksa. The Nkr2.4bn (£183m) balance will be retained from the business being sold. The annual turnover of the construction division, which employs about 70,000 people, is approximately Nkr13bn (£988m).

Kvaerner’s chairman Christian Bjelland says that the deal will provide the company with enhanced financial flexibility which will be used to pursue its growth strategies.

Kvaerner’s president and CEO Kjell E Almskog adds that the sale of the construction division which is expected to be completed by early October this year, will mean a further sharpening of its strategic focus. He also says that with its added concentration of activities, Kvaerner is aiming to be among the leading suppliers of technology and engineering services within its core areas.

Norwegian-registered Kvaerner has a London, UK-based international headquarters. The group currently employs 55,000 people throughout Europe, Asia and America and has an annual revenue of about US$8bn (£5bn).

Jessica Jarlvi