ENGINEERING and infrastructure behemoth CIMIC Group has sold a 50% stake in its wholly-owned subsidiary UGL Transport to the Japan-based Sojitz Corporation in a deal worth $500 million cash announced on 2 December.
CIMIC will retain the other 50% stake in UGL Transport to create a 50:50 ownership structure with Sojitz, a diversified infrastructure business headquartered in Tokyo.
UGL Transport is a transport equipment manufacturing and services company operating across Australia and New Zealand, specialising in locomotive and rolling stock manufacturing and servicing, network management, transport operations, and advanced signalling and communications systems.
With estimated FY2025 revenue of $1.1 billion, the business holds long-term contracts with government authorities and tier-one constructors and is well-positioned for expansion through technology-led opportunities. UGL Transport combined with Wabtec to manufacture a new fleet of 94 class locomotives for rail operator Pacific National, delivered this year.
CIMIC’s partnership with Sojitz enables UGL Transport to expand into new markets, including Asia-Pacific opportunities in collaboration with CIMIC, HOCHTIEF and ACS companies such as Leighton Asia, CIMIC group executive chairman Juan Santamaría said.
“Together with Sojitz, we will accelerate UGL Transport’s expansion into new markets and technologies, including pursuing growth in Asia Pacific in collaboration with Leighton Asia, while continuing to support Australia’s transport networks,” Mr Santamaría said.
Sojitz managing executive officer and COO aerospace, transportation and infrastructure division, Masakazu Hashimoto said Sojitz had a “wealth of experience and in-depth expertise in the rail industry” including rollingstock maintenance and leasing businesses in North America, infrastructure projects for India’s railways and the Jakarta metro construction project in Indonesia.
“Following our recent strategic advancement into the infrastructure and energy sectors in Australia, we are honoured to enter into a promising partnership with UGL to drive further growth for both parties by leveraging Sojitz’s extensive expertise and networks across Asia.”
CIMIC continues to own and operate 100% of UGL’s specialist engineering, industrial services and operations across energy, resources, infrastructure, defence, telecommunications and technology, supported by subsidiaries CPB Contractors, UGL, Leighton Asia and Pacific Partnerships.
The Sojitz transaction is subject to customary conditions including regulatory and foreign investment approvals.