CIMIC Group Limited
CIMIC Group Limited is a prominent international contractor and specialized construction company, headquartered in North Sydney, New South Wales, Australia. Established in 1949, the company originally operated as Leighton Holdings and has since evolved into a key player in sectors including engineering, infrastructure, mining, and environmental services. CIMIC is involved in a diverse array of large-scale projects, spanning roads, bridges, airports, and various mining operations. As of May 2023, the group employed approximately 24,000 professionals across twenty countries, making it a significant global presence.
The company underwent a major restructuring in 2015 after its majority shareholder, Hochtief Australia Holdings Limited, increased its ownership stake. This transition also led to the rebranding from Leighton Holdings to CIMIC Group, an acronym for Construction, Infrastructure, Mining, and Concessions. Over the years, CIMIC has made numerous acquisitions, enhancing its capabilities and reach, particularly in mining and public-private partnerships. Notable projects include the construction of Brisbane Airport and various infrastructure developments, underscoring its impact on both local and international markets. Looking ahead, CIMIC Group aims to expand its mining operations beyond Australia, exploring opportunities in the United States and other regions.
On this Page
Subject Terms
CIMIC Group Limited
- Date founded: 1949
- Industry: Civil engineering; construction
- Corporate Headquarters: North Sydney, Australia
- Type: Public
Overview
CIMIC Group Limited is an international contractor and specialized construction company based in North Sydney, New South Wales, Australia. The group handles numerous large projects that involve such industries as engineering, infrastructure design, construction, environmental services, mining, infrastructure maintenance, and related concessions. CIMIC has been involved in the construction of roads and bridges, railways, seaports, airports, mining operations, and defense industry projects. The company has also handled transportation projects and oil, gas, and renewable energy acquisition.
By the mid-2020s, the company employed over 30,000 people in twenty countries. In addition to its headquarters in Australia, CIMIC Group has operations in Africa, Asia, North and South America, and the Middle East. Until April 2022, it was a subsidiary of Hochtief Australia Holdings Limited, which held a 70 percent share of CIMIC Group stock. Hochtief purchased all remaining stock in the company in 2022, making it a true subsidiary of Hochtief.
History
The company was founded in 1949 by Stanley Leighton, an English businessman. Then known as Leighton Holdings, the company could trace its beginnings to the growing Australian railroad industry of the 1890s. Leighton Holdings was first listed on the Melbourne Stock Exchange in 1962.
During the 1970s, the company landed important contracts related to improvement projects in Sydney Harbour. It grew to become the largest construction company in Australia and was responsible for many large projects in both the public and private sectors. The company expanded into Asia in 1975, undertaking major projects at Tuen Mun and Discovery Bay in Hong Kong. Leighton Holdings’ presence in Asia grew throughout the next two decades as they took on contracts for projects in Cambodia, Vietnam, Thailand, and the Philippines.
Leighton Holdings expanded further through mergers and acquisitions of other similar companies operating throughout Australia. These included the Thiess Group, Sedgman, UGL, Pacific Partnerships, and EIC Activities. Many became part of the company during or shortly after a major restructuring that occurred in 2015.
This 2015 restructuring occurred when Leighton’s majority shareholder, Hochtief Australia Holdings Limited, began acquiring more shares of Leighton Holdings stock. The company had been operating under an informal agreement that kept the German-based Spanish company from acquiring more than 55 percent of the available shares in Leighton Holdings. In 2014, Hochtief’s Chief Executive Officer, Marcelino Fernandez Verdes, became chairman of Leighton’s executive board, and the company began a major restructuring from within. Hochtief gradually acquired 70 percent of the available stock in Leighton and began making changes.
Leighton sold several subsidiary companies, including John Holland, which was acquired in 2000 and worth an estimated A$1.15 billion (US$803 million). Several key executives were let go or resigned, including chief executive Hamish Tyrwhitt. The move came in the wake of a significant financial scandal involving Leighton Holdings. Company executives were hit with allegations of bribery and taking kickbacks in relation to the construction of a A$733 million (US$512 million) Iraqi oil pipeline. The charges dated back to 2010 and involved several company executives and employees who were later convicted on various charges. The company came under legal attack again in 2018 when its Leighton Asia division was accused of “corporate arrogance” and failure to adhere to established safety standards during a 2013 Hong Kong railway project.
When Hochtief completed the takeover by stock purchase, their parent company, ACS Group, changed the name of Leighton Holdings to CIMIC Group in 2015. The name is an acronym that stands for Construction, Infrastructure, Mining, and Concessions. The CIMIC Group includes a number of subsidiaries acquired or established during the 2000s and 2010s, some of which maintain “Leighton” as part of their name.
CPB Contractors is a subsidiary formed in 2016 when subsidiary Leighton Contractors merged with Thiess Construction. Thiess was formed in 1934 as an earthmoving business in the Darling Downs section of Queensland and went on to become a major force in Australia’s mining industry. The merger strengthened CIMIC Group’s presence in international mining operations.
Sedgman specializes in mineral commodities, especially mineral processing. Established in 1979, it was listed on the Australian Securities Exchange for the first time in 2006 and became part of the CIMIC Group in 2016.
In the same year, CIMIC also acquired UGL, a property services firm. UGL began as an engineering firm in the 1960s and enhanced its own business in the 1990s through the purchase of United Goninan. Goninan was founded by two brothers in 1899 and became an important provider of railroad engines and cars that helped build Australia’s early coal industry.
These acquisitions followed the establishment of several new subsidiaries within Leighton/CIMIC Group itself in 2014. These included Pacific Partnerships and EIC Activities. Pacific Partnerships is a division established to handle Public-Private Partnership (PPP) infrastructure and public construction projects. EIC Activities is an engineering and technical service subsidiary that helps with risk management and other aspects of profitability in CIMIC Group projects.
In the mid-2020s, CIMIC increased its equity interest in Thiessis, a global mining services provider, to 60 percent. Several companies within CIMIC Group Limited also acquired mining businesses. Sedgman acquired the hard rock lithium concentration and refining organizations MinSol Engineering and Prudentia Engineering, while Leighton Asia acquired Maverick United Consulting Engineers.
Impact
During its long history, CIMIC Group and its subsidiaries have been responsible for numerous important construction projects and mining operations around the world. These include Brisbane Airport and several related projects, numerous dams and tunnels, and infrastructure projects such as bridges and desalinization plants. The company also undertakes many smaller private and community-based projects, such as schools and shopping malls.
CIMIC has also become an international leader in mineral resource and mining operations. The company and its subsidiaries have been contracted for numerous important mining projects in Australia, particularly in the coal industry. CIMIC has the potential to grow its mining operations internationally, with possible expansions into the United States and other areas.
Bibliography
“About Us.” CIMIC, www.cimic.com.au/our-group/about-us. Accessed 20 Jan. 2025.
“CIMIC Group.” Bloomberg, www.bloomberg.com/profile/company/0908875D:AU. Accessed 20 Jan. 2025.
Creagh, Ben. “CIMIC Contract Spree in Resources Continues.” Australian Mining, 18 Jan. 2019, www.australianmining.com.au/cimic-contract-spree-in-resources-continues. Accessed 20 Jan. 2025.
Ferguson, Adele. “How Leighton Was Lost.” Sydney Morning Herald, 14 Mar. 2014, www.smh.com.au/business/how-leighton-was-lost-20140314-34sdv.html. Accessed 20 Jan. 2025.
“Leighton Changes Name to CIMIC Group.” SBS News, 21 Apr. 2015, www.sbs.com.au/news/leighton-changes-name-to-cimic-group. Accessed 20 Jan. 2025.
McKenzie, Nick, and Richard Baker. “Leighton Holdings Directors Blamed over Graft.” Sydney Morning Herald, 4 Oct. 2013, www.smh.com.au/business/leighton-holdings-directors-blamed-over-graft-20131003-2uxjq.html. Accessed 20 Jan. 2025.
"Our Brands." CIMIC Group, www.cimic.com.au/our-group/our-brands. Accessed 20 Jan. 2025.
"Sedgman Completes Strategy to Become Full Spectrum Critical Minerals Service Provider with Acquisition of Minsol Engineering." Sedgman, 1 Apr. 2024, www.sedgman.com/news/2024/sedgman-completes-strategy-with-acquisition-of-minsol-engineering. Accessed 20 Jan. 2025.
Wiggins, Jenny. “Leighton to Change Name to CIMIC in Wake of Corruption Allegations.” Sydney Morning Herald, 20 Mar. 2015, www.afr.com/markets/equity-markets/leighton-to-change-name-to-cimic-in-wake-of-corruption-allegations-20150320-1m40j3. Accessed 20 Jan. 2025.