23rd Jan 2023 11:25
(Alliance News) - Balfour Beatty PLC on Monday said it won a deal to dig a tunnel under the River Thames, though peer Kier Group PLC will be hoping for better luck next time.
The duo were in the running for lot 1 of the Lower Thames Crossing package. The deal Balfour won is worth GBP1.2 billion and the aim is to provide better road connections in the South of England.
The project at Tilbury in Essex aims to ease congestion and boost capacity in the south of England, with Balfour Beatty to design and deliver more than 10 miles of new highways, and build 49 structures including bridges and viaducts. The company expects completion between 2029 and 2030.
At its construction peak, Balfour will employ some 2,000 people in connection with the deal.
"This provides good medium-term earnings visibility," Peel Hunt analyst Andrew Nussey commented.
A Kier and Eiffage SA was its only competitor for this portion of the package, according to a shortlist of bidders published by National Highways last March. Eiffage is a civil engineering firm listed in Paris.
The competition is stiff for a second tender of the package, worth some GBP600 million.
Kier and Eiffage are hoping for better luck this time but three other bidders are in the running. They are up against London-listed Costain PLC, as well as a UK unit of Stockholm-listed Skanska AB, and a joint-venture between Vinci SA, Royal BAM Group NV and Ferrovial SA.
Construction firm Vinci is based in Paris, BAM is headquartered in Bunnik, Netherlands and transport infrastructure firm Ferrovial in Madrid.
In London, Balfour shares were 0.6% higher at 362.00 pence. Kier surged 6.4% to 73.93p, while Costain was up 1.2% at 41.47p.
By Eric Cunha, Alliance News news editor
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