Dutco, the UAE-based company with operations in construction, manufacturing, oil and gas and hospitality, has said that it has finalised the acquisition of the minority shares held by UK construction giant Balfour Beatty in its joint ventures – Dutco Balfour Beatty, Dutco Construction Company and BK Gulf.

In February 2017, Balfour Beatty said it had reached a cash agreement with its joint-venture partner to sell the group’s entire share of Dutco Balfour Beatty and BK Gulf – subject to regulatory approval – for a total cash consideration of $13.7 million.

In a statement released on its website, the UK-based contractor said that the local partner would assume responsibility for Balfour Beatty’s guarantees of bonding obligations in the joint ventures as part of the transaction.

“Our relationship with Balfour Beatty plc has been very successful for over 40 years during which time we have executed many prestigious and complex projects. A review of the strategic objectives of the two shareholders has indicated the time was right for a new chapter to be written for the joint businesses,” said Tariq Baker, Dutco Group chief executive. “This allows Balfour Beatty to focus on their target areas of operation, which no longer includes the Middle East.

“Dutco is part of the original fabric of construction in the UAE and we believe we have a significant role to play in the development of the country. There will be no fundamental change to our existing operations other than our continuous drive to become more efficient and productive in the execution of our projects,” he added.

Balfour Beatty had been in partnership with Dutco as a main contractor, and with BK Gulf in MEP contracting since the 1970s. Both local firms employ about 6,000 staff each, and have worked on a number of high profile projects in Abu Dhabi and Dubai.

Since the start of 2015, Balfour Beatty has been exiting operations in the Middle East, Indonesia and Australia as part of its strategy to focus its attention on its chosen markets in the UK, USA and Far East.

“Our companies will continue to focus fully on serving our existing customers and we will also look to develop new relationships across our wide construction offering. We are positioning ourselves to be in a stronger position to work with our customers in delivering high quality and cost effective projects,” Baker continued.

“We have a strong order book and we are committed to grow the business in a controlled and focused manner.”