Construction rivals merge to tap mainland power

Australian engineering and project management services provider Worley Group has agreed to acquire United States-based rival Parsons E&C for US$245 million, in a move that will consolidate their push into the mainland market.

Both had formed separate joint ventures with mainland-based Maison Engineers & Constructors, said a Maison official in Shanghai.

'Worley and Parsons have no China operations other than representative offices, while Maison has no operation overseas. The joint ventures are complementary,' he said.

The combined group would seek project opportunities arising from China's fast-growing construction of energy infrastructure, such as oil and gas pipelines and power plants.

Worley chief executive John grill said: 'The consolidation in the oil and gas industry globally is driving projects of greater and greater scale and creating a similar consolidation amongst service providers.'