The Ferrovial Group has become a strategic partner for Budimex, one of the leading Polish construction firms, as it has increased its stake in the companys share capital. This holding, which is the result of the share purchases made by Ferrovial and its subsidiaries in recent weeks, represents 46.35% of the companys voting rights.
The operation, which falls within the Groups international expansion strategy, has two main goals: to become a stable strategic partner in order to drive the growth of Budimex and make it the leader in the Polish market and to open up possibilities of development and expansion for Ferrovial in Poland and Central Europe.
Diversification and expansion in the area of influence
Ferrovials entry in the capital of Budimex which will keep its independence and will continue to be a listed company- will help its move into other businesses, where Ferrovial can contribute its investment potential and its know-how and international leadership, as is the case in transport infrastructure concessions (motorways, airports, car parks).
Moreover, Poland becomes a key country for Ferrovials development and expansion in the national and Central European market. In Poland the construction industry has good future prospects, as it is to receive cohesion funds to modernize infrastructure when it joins the European Union, foreseeably in the year 2003. Budimex also works in Germany, countries from the former Soviet Union, the Czech Republic and Slovakia and the entry of Ferrovial could drive this growth and consolidation in markets in its area of influence.
The leader in terms of market cap
Budimex is the leading Polish construction firm in terms of market cap., with a value of Ptas 32 billion on the Warsaw Stock Exchange. In 1999 turnover amounted to Ptas 55.6 billion and is expected to exceed Ptas 80 billion this year, as a result of the growth of the company, the acquisition of a majority stake in Mostostal Krakow (which specializes in industrial construction, power stations and roads) and the global integration this year of Unibud, a company engaging in building work. The Budimex Groups core business is construction civil works, building and industrial- and it has a growing franchise in the real estate business.