Porr’s acquisition of Teerag-Asdag approved

The European Commission has approved Austrian contractor Porr's acquisition of Teerag-Asdag, an Austrian road building company with which it already had strong business ties.

Porr was Teerag-Asdag's majority shareholder, with a 53% stake, and the deal, the value of which was not disclosed, allowed it to gain 100% ownership of the company. Teerag-Asdag, which reported revenues of € 470 million in 2010, has also worked with Porr on joint venture contracts in the past.

Teerag-Asdag will take on responsibility for Porr's civil engineering and road construction business in Austria. Porr said Teerag-Asdag would retain its name, with the addition of "A Porr company", in the branding.

Porr said the integration of Teerag-Asdag would strengthen its business in Austria, where both companies have civil engineering and road building operations.

The company has also restructured at group level to try to become more efficient and responsive to market conditions. Three divisions have been created, each focusing on specific regions.

The European home market division targets Germany, Austria, Switzerland and Poland, and includes the Teerag-Asdag subsidiary.

The core European markets division, meanwhile, will focus on the Czech Republic, Slovakia, Hungary, Romania and south eastern Europe, particularly Serbia and Croatia, and the international division will focus on Porr's main markets of Russia, Libya, Oman, Qatar and Turkmenistan.