Impregilo - Salini Agreement

On December 20, 2013 the Strategic Agreement between Impregilo and Salini was resolved by mutual agreement due to the imminent effectiveness of the merge and the consequential lack of the reasons that had initially led to the Agreement’s signing.

The strategic agreement between Salini and Impregilo signed on 27 September 2012, was established with the aim of realizing market and value gain opportunities and cost savings, driven by operational and industrial synergies, without affecting the individuality, structure and size of the two Groups. 

This strategic partnering relationship was based on an equal (50/50) split of the benefits and costs for the chosen projects and enabled both to benefit from a fruitful collaboration in three distinct areas:

1. Commercial:
   1. by defining joint commercial strategies in the markets/countries where one of the parties, or both, were already present or in markets/countries selected from time to time;
   2. by taking advantage of the expertise established over time by the two Groups and their joint track record  to compete for tenders for the construction of highly complex, large-scale projects;
   3. by relying on a strong worldwide, commercial presence to develop a broader and effective sales network, coordinated worldwide, that covers 50 countries.
2. Managerial: by building an integrated team of managers with broader competencies.
3. Costs: as a result of the achievable synergies in the procurement of materials and machinery and by optimizing investments.

All of the chosen projects were pursued jointly and then a single bid was presented to the customer. Both partners had the option of not pursuing a specific commercial initiative jointly, thus leaving the counterparty free to pursue the project independently or in cooperation with another party.

The agreement, which was stipulated with an undetermined duration, gave each party the right to recede and established the following objectives:

1. Optimize the two Groups’ strong geographic and market segment positioning.
2. Increase the success rate in competing for tenders. Combining the competencies and capabilities of both Groups in order to increase the potential for winning bids for large-scale, complex infrastructural projects.
3. Diversify risk by sharing the commercial investment during the bidding process, increasing the number of projects in the portfolio and expanding the geographic presence of both Groups.