DLF's partner LoR buys Australian co

Seeking to tap opportunities in Indian rail and mining sectors, UK-based infrastructure company Laing O'Rourke, which has a tie-up with domestic realty major DLF, has acquired Barclay Mowlem, Australia-based building and engineering firm for £100 million pound (about Rs 850 crore).

"With recent shift in Indian government policy throwing open the gates for private infrastructure development companies to enter railway and mining projects, acquisition of Barclay Mowlem will act as a catalyst in DLF-LoR's foray into this specific areas," LoR said in a statement.

With this acquisition, DLF-LOR intends to collaborate closely with Barclay Mowlem to bring the latest construction technology and large infrastructure project handling experience to India.

There are immense opportunities in Indian railway projects whether it is PPP, BOT or any other form, it said. "With economics working more in favour of rail than in road, there will be a tremendous growth opportunity in near future," it said.

When contacted LoR's India head Dhiraj Singh confirmed the move and said this would bring huge value and expertise to the company's business in India in the infrastructure space.

LoR, which has presence in Europe, Asia, Middle East, Australia and India, has purchased Barclay Mowlem from its UK parent Carillion Plc.

Barclay Mowlem's capabilities and expertise include highly specialised rail sector, mining and material handling, power, industrial, civil and building.

Barclay Mowlem, a one billion Australian dollar firm with a headcount of about 2,000, offers finance, design, construction and maintenance solution and will be working with  DLF-LoR business in India and its neighbouring countries.

The Barclay Mowlem business will be integrated with LoR's existing operation in Australia, it said. Laing O'Rourke is all set to bid for government's ambitious Railway Freight Corridor project connecting major metros and highway projects involving an investment of over Rs 250 crore (Rs 2.5 billion).

LoR, which has expertise in constructing airports, has also evinced interest to bid for airports modernisation in India other than Delhi and Mumbai, for which the contract has already been awarded.

LoR, which has been a major party in constructing the $4.2 billion Terminal V at the Heathrow airport, would showcase its expertise in a big way in India.