Leighton buys out partner in Indian construction venture for $99mn

Leighton Holdings has reportedly bought out its partner in an Indian construction venture for 99 million dollars, giving it full control of its Indian arm as urbanisation and infrastructure spending gathers pace in the region over the next few years.

Leighton said that the transaction, expected to be completed in the first quarter of 2014, will see the company's net profit after tax take a 70 million dollars hit.

According to the Sydney Morning Herald, the firm said that its underlying net profit after tax would not be affected and remains in the forecast range of 520 million dollars to 600 million dollars.

The report said that the Leighton Welspun joint venture, which was established in 2010 and is part of Leighton Asia, India and Offshore Group and focuses on India's construction and energy sectors, will be renamed Leighton India but remain under the same reporting structures.

Leighton said that the decision comes amidst Indian multinational giant Welspun's shift towards focusing on its core businesses such as textiles, pipes, energy and steel.