Graña y Montero acquires stake in Morelco Group
LIMA, November 28, 2014 – Peruvian engineering and construction group Graña y Montero (GyM) concluded a deal on Friday to purchase 70 percent of Colombia-based engineering company Morelco Group.
Peru’s largest engineering and construction firm, GyM has several subsidiaries covering infrastructure projects, real estate and the oil and gas industry. The company has already begun to expand abroad with mining projects in the Dominican Republic, Bolivia, Panama and Guyana but has been slow to regionally develop its oil and gas subsidiary, Graña y Montero Petrolera (GMP).
By acquiring Morelco Group, a company that specialises in electrical engineering projects supporting the oil and gas industry, GMP will have a new platform to expand into more lucrative markets in Colombia, the Caribbean and Central America.
In the deal concluded yesterday, the owners of Morelco Group will retain 30 percent of the company, and CEO current Arturo Serna Henao will continue in his present position.
Morelco Group has approximately $500 million in active contracts and is working on pipeline maintenance projects in Western Colombia, the development of a water treatment system in Acacías, the Esmerelda Refinery in Ecuador, the Termotasajero power station in Colombia and other projects. The company’s turnover for 2014 is expected to reach $250 million.