Italian company reaches agreement to buy collapsed Australian construction giant

Italian construction company Webuild has completed a deal to buy Australian building giant Clough, following its collapse last week.

Perth-based Clough faced an uncertain future after it was placed into voluntary administration, putting at risk 1200 jobs.

But this week, administrators reached an agreement with Webuild.

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The Italian company is now set to acquire vital projects such as the Snowy Hydro 2.0 and Inland Rail contracts, as well as assets under Clough's Australian business.

The parties have until Wednesday, December 21 to conclude the agreement.

Clough has been involved in numerous large-scale infrastructure projects around the country, including hydropower, energy, transport and mining.

It employs around 1250 Australian-based workers and the same number worldwide, according to its website.

Webuild had been negotiating to acquire Clough Group before the company entered administration earlier this month.

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Australia is Webuild's second largest market after Italy.

It recently finished work on Perth's Forrestfield-Airport rail link, and the company says the deal will enable it to boost its Australian workforce.

A number of construction firms have gone out of business this year, because of tough market conditions over the pandemic.

Companies have battled the rising cost of materials and severe labour shortagesany projects negotiated before the pandemic are now no longer viable.