Infrastructure services, group, UGL has concluded the purchase of UK property consultancy DTZ Holdings for 77.5 million pounds ($A118 million), in a move to expand its corporate property services and growth in China.
UGL said the deal is expected to be marginally postive for earnings per share from the 2012 financial year (the current one).
UGL shares were up 1% in early trading to $13.04, but dipped into the red in later dealings to end off 7c at $12.83.
UGL bought DTZ out of administration in the UK after another bid collapsed because of the euro zone crisis.
Majority shareholder Saint George Participations in concert with the real estate arm of French bank BNP Paribas had launched the bid, but withdrew after DTZ said equity in its business was worth little or nothing due to its large amount of debt.
UGL said it was interested in Dot’s operations in China where the company sees strong growth.
"We see significant opportunities for growth in Asia, particularly in China, where DTZ holds the leading market position in property services," UGL said in yesterday’s statement.
DTZ has around $10 billion assets under management.
UGL said the acquisition of DTZ "will transform Gull’s property services business into one of the world’s largest, integrated end-to-end providers of property services, operating across all key geographic regions.
"The acquisition of DTZ broadens Gull’s property services offering and enhances its geographic footprint across Asia, the UK, Europe, Middle East and Americas.
"The combination of UGL Services and DTZ will have annual revenues of A$1.9 billion making UGL Services one of the largest participants in the global property services sector.
"Following the acquisition of DTZ, UGL will have combined annual revenues of A$5.1 billion, approaching 53,000 personnel worldwide operating in around 240 offices in 43 countries and one of the broadest vertically integrated property services offerings globally," UGL said in yesterday’s statement.
And Whitehaven Coal and Aston Resources have confirmed media reports they are in talks about a potential merger of equals worth about $A4.7 billion.
Whitehaven said yesterday the discussions were incomplete and there was no guarantee that an agreement would be reached.
Whitehaven made the announcement after the Australian Financial Review reported that the companies were in merger discussions.
"Whitehaven continues to investigate value enhancing opportunities on behalf of its shareholders," chief executive Tony Haggardly said in the statement.
"However, it is unclear at this stage as to whether the terms of any such potential transaction would be suitable to put to Whitehaven shareholders."
A merger would see a top level coal group formed.
Both are the largest miners in the Gunned Basin, north west of the Hunter Valley.
Whitehaven (which tried to be acquired by earlier this year but called off the search for a buyer in May), saw a mere 1% rise in the share price to $5.71. It’s valued at about $2.8 billion.
Aston’s shares jumped a stronger 4% or 38c to $9.49. Its valued at about $1.9 billion.
