Watpac announced the agreement yesterday, stating that Besix Group has signed a memorandum of understanding to investigate future joint venture opportunities.

“The agreement will enable Watpac to retain its unique Australian heritage and local networks, while accessing the expertise and reach of an international industry leader,” Watpac chief executive officer Martin Monro said.

“This is a partnership that will create opportunities for our business, our people and our shareholders.

“Both companies share similar values and operating cultures, with safety, environment and good governance an intrinsic part of how we do business.”

Besix Group acquired the 15.6% shareholding (approximately 28.8 million shares) from long-term Watpac board member and major shareholder Kevin Seymour and other parties.

The agreement is scheduled to settle within the next 30 days, subject to approval from the Foreign Investment Review Board.

Seymour will not retain any shareholding in the company and has advised of his intention to retire from the Watpac board in September this year.

“Mr Seymour has been a non-executive director of the Watpac board since 1996, devoting his time, expertise and leadership to growing the business,” Watpac chair Chris Freeman said.

“Of his 17 years on the board, he served eight years as chairman and oversaw the fastest growth and diversification in the company’s 30-year history.”

Freeman said the transaction by Belgium’s largest and most successful construction group stood as an endorsement of Watpac’s skills, strategy and industry leadership.

“[Besix Group] specialises in the construction of buildings, infrastructure, marine environments and sporting facilities and has a forward order book totalling €3.5 billion,” he said.

“Besix Group has been actively monitoring the Australian market for several years and ultimately chose to approach Watpac.

“The strategic alliance with Watpac provides Besix Group with a reliable partner with sophisticated local networks, a healthy balance sheet, diversified income stream and rigorous corporate governance.”

Freeman stated that Watpac’s strategic alliance with Besix Group complemented its strategy to deliver long-term, sustainable value to shareholders.

“Last year the Watpac board and senior executive team commenced a strategic business review and capital management program to ensure the group is in the strongest possible position to enhance our profitability and deliver healthy shareholder returns,” Freeman said.

“Implementation of this program is well underway and will continue as planned in the year ahead.”

Besix Group was part of the JV that delivered the world’s tallest tower, the 800m Burj Kahlifa in Dubai in 2010.

Current landmark projects include the €1.5 billion Ferrari Experience theme park in Abu Dhabi, the €71.4 million Carpe Diem office tower in Paris and the €136 million Ras Laffan port expansion project in Qatar.