Salini and Impregilo approve merger

Italian contractors Salini and Impregilo have approved the terms of their merger, creating a new listed company known as Salini Impregilo that is targeting consolidated revenues of €7.4 billion by 2016.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are forecast to reach €1 billion by 2016, while the combined companies’ order backlog is expected to total €26 billion.

Construction Europe’s 2012 ranking of the largest 100 contractors in Europe saw publicly-listed Impregilo at 53^rd place with revenues of €2 billion, and privately-held Salini ranked 65^th with revenues of €1.4 billion. The combined 2016 forecast for the companies’ sales would propel Salini Impregilo to 14^th place in the CE-100 ranking.

A shareholders meeting to approve the merger will be held in September, the companies said, adding the merger would be completed by the end of the year and be effective from the start of 2014.