ALL regulatory and financial hurdles have been crossed in the transformation of UGL Transport into a joint venture between previous owner CIMIC Group and new investor Sojitz Corporation.
Sojitz Corporation has acquired a 50% equity interest in UGL Transport, in a transaction valuing the latter at approximately $800 million (100% basis), with CIMIC realising cash proceeds of approximately A$500 million.
The strategic partnership between the Japanese and, ultimately Spanish-owned, company was first announced in early December last year. CIMIC describes UG Transport as a leading integrated transport services platform operating across Australia and New Zealand, with estimated 2025 revenue of $1.1 billion, and well-positioned for continued growth.
Known most conspicuously as the manufacturer and maintainer of mainline locomotives for the major Australian railcos, UGL Transport activities cover the engineering, design, and construction of advanced signalling and communications systems, manufacturing of rolling stock, and operation and maintenance.
“This partnership marks a significant milestone in CIMIC’s strategy to unlock value and accelerate growth across its portfolio. Together with Sojitz, UGL Transport will broaden its service offering and expand into new markets, including Asia-Pacific opportunities,” the companies said.
ACS Group and HOCHTIEF CEO and CIMIC Group executive chairman Juan Santamaría said: “Finalising this partnership with Sojitz shows the strength and future potential of UGL Transport. We look forward to accelerating expansion into new markets and technologies, while continuing to support Australia’s transport networks.”
Sojitz managing executive officer, COO Aerospace, Transportation & Infrastructure Division, Masakazu Hashimoto added: “We are honoured to officially join forces with UGL, leveraging Sojitz’s extensive expertise and networks across Asia to drive further growth for both parties.”