Leighton Is Selling Engineering Contractor John Holland To A Chinese Company For $1.15 Billion

Image: Paula Bronstein / Getty Images.

International contractor Leighton is selling its engineering subsidiary John Holland for $1.15 billion to Chinese company CCCC International Holding Ltd.

CCCI is a wholly-owned subsidiary of China Communications Construction Company (CCCC), the fourth largest construction company in the world by revenue, with a market cap of $A23.5 billion.

Leighton CEO Marcelino Fern├índez Verdes says the divestment of is part of the company’s strategic review initiatives to strengthen the balance sheet.

The money will be used to pay down debt.

The sale will mean a cut in Leighton’s annualised revenue of about $3.7 billion. About 4,100 employees, from almost 50,000 in the group, go with the business.

Leighton’s shares are trading up 1.38% to $22.00.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.