2020 was a year of big changes for the largest Portuguese building and construction company. Mota-Engil informed the market that it had signed with China Communications Construction Company (ACPC), one of the largest infrastructure groups in the world, a strategic partnership and investment agreement. This was also a year of growth for the company, particularly in international operations, which started 2021 with its second largest contract, a US $570 million contract in Ghana.
The building and construction company chaired by António Mota, considered by Caixa Geral de Depósitos and weekly newspaper Expresso as the entrepreneur of the year, is represented in the Europe Top 25 and World Top 100 with 37 thousand employees spread over more than 25 countries.
The announcement of the partnership with the ACPC, whose essential aspects had already been disclosed to the market in August 2020, implies an important reinforcement in the strength of the national construction company in the year when it will complete 75 years of activity.
Under this Agreement, Mota Gestão e Participações SGPS, a shareholder of Mota-Engil, agreed to sell 55 million shares to ACPC at € 3.08 per share. The agreement also allows the new partner to secure a relevant holding in a capital increase of up to 100 million new shares, which was submitted to the General Meeting on January 7th.
Following the increase in share capital, MGP will hold a 40% stake in Mota-Engil, reinforcing its total commitment and alignment with its historical position in the construction group, while the new shareholder will achieve a holding slightly above 30%.
The new shareholder structure and the framework of this partnership, which is based on the national group’s value of around €750 million, shall strengthen the national construction company’s financial, technical and commercial capabilities in order to increase its activities in all markets and open up new opportunities for new developments.
For now, the effectiveness of the Agreement is still dependent on the ascertainment of several precedent conditions, of a legal and contractual nature, e.g. the approval or consent by several Public Entities and confirmation by the Securities and Market Commission (CMVM) that the Agreement and the operations provided for therein do not impose on the CCCC an obligation to launch a takeover bid.
2020 was a year of commercial success and geographical diversification of businesses
The year 2020 was also a year of strong growth for the Portuguese construction company in the many geographies where it holds a presence and which imply an important diversification of risk.
Mota-Engil has signed a number of major deals.
In the African market, the Oil & Gas contract won in Mozambique (the first relevant contract in a project that will be the largest Investment in Africa in the coming years and which will make Mozambique one of the largest world producers of gas by the end of the decade). It is worth mentioning that the Mozambican Government estimates a global investment of US $ 50 billion for this large project. The construction company will be allocated part of this project representing US $ 350 million. Also noteworthy is the mining contract in South Africa in the amount of €240 million.
The contract for a new football stadium in the Ivory Coast and the construction of the largest indoor market on the west coast of Africa in the Ivory Coast were also emblematic. These projects involve amounts of €84.4 million and €43.8 million.
Novo estádio de futebol na Costa do Marfim
In Latin America, Mota-Engil maintained its strong growth with some emblematic works. This was the case of e Tren Maya (the Group’s largest contract ever in Latin America in the amount of €636 million, signed in April). Also in Mexico, the construction company secured a concession contract for 30 years for the construction, operation, preservation and maintenance of the Tultepec-AIFA-Pyramids motorway. This highway, in addition to being an important link to Mexico City, connecting three main highways that lead to the city from the North, will also be one of the access points to the new Felipe Angeles International Airport. This 27 km road concession in which Mota-Engil holds a 100% stake includes €240 million for the design and construction contract in charge of MEM.
In Colombia, the construction company secured a contract with a global value of €270 million for the construction of an energy production plant for Talasa ProjectCo SAS, a vehicle company with mostly Chinese capitals, including the China Communications Construction Company) and CTG (China Three Gorges Corporation).
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Mozambique
Also noteworthy is the signing of a contract for the construction of a new section of 24km of road (Barranca Larga-Ventanilla) in Mexico, worth around €45 million.
Also in Europe, some new emblematic projects were announced, namely through the subsidiary Mota-Engil Central Europe (MECE), which signed a new contract in Poland in the amount of €72 million pertaining to the project and construction of the S19 expressway on the node Białystok Południe – Ploski, in a project to which some of the largest European companies also submitted their tenders, in a total of nine companies of different nationalities in this tender. On the 13-kilometer stretch, two lanes will be built in 36 months in each direction, including a reserve for the third lane, with the contract for the development of the project and consequent construction, to be completed in 2024.
2021 kicks off with the second largest contract in the company’s history
The company’s growth starts at a good pace in 2021, with the announcement of the help of the second largest contract in the history of Mota-Engil, which was won by the subsidiary Mota-Engil Engenharia & Construção Africa, in Ghana, in the total amount of $ 570 million.
The awarded works correspond to the design and construction (renovation and expansion) of the Accra-Tema Highway and extensions, totalling 27.7 km, and will take place over a period of 48 months.
The award once again strengthens the group’s order book in Africa, particularly in the western region of the continent, through a project with a relevant dimension and an extended term, ensuring the stability of this region’s contribution to the construction company’s turnover.
New record as regards the company’s order book
Mota-Engil shall close the year 2020 with an order book of €6 billion, the group’s historic maximum. The national market, as well as the international markets where the construction company is present, were the sources of strong growth for the company throughout the year. This will be the best barometer to ensure the group’s growth in the year that marks the 75th anniversary of this company.
