CIMIC Group has entered into an agreement with funds advised by Elliott Advisors (UK) Ltd (Elliott) regarding the acquisition by CIMIC of an additional 10% equity interest in Thiess, a leading global mining services provider.

The acquisition, for a purchase price of A$320 million ($210 million), increases CIMIC’s ownership of Thiess to 60%.

CIMIC and Elliott will continue to have equal board representation while CIMIC will strengthen its governance over the day-to-day operations of the company.

Consequently, CIMIC will fully consolidate Thiess in its financial accounts. The acquisition will be positive for CIMIC’s credit ratings, it said.

CIMIC Group Executive Chairman, Juan Santamaria, said: “Increasing our ownership of Thiess strengthens CIMIC’s business profile, as it grows its commodities portfolio to include metals and minerals critical to the world’s shift to zero emissions and develops services to enable sustainable mining, reflecting the strategic importance of the energy transition to CIMIC.

“Thiess is a well performing business underpinned by long-term, low-risk contracts, providing an annuity-style income stream and stable cash flows.”

Thiess is a global leader in diversified mining services, providing open-pit and underground mining, asset management and sustainability focused solutions to clients around the world. With more than 15,000 employees, Thiess operates in Australia, Asia and the Americas across more than 60 projects and had 2023 revenue of A$5.9 billion.

CIMIC sold 50% of Thiess to Elliott in 2020, with a put option back to CIMIC exercisable between January 2024 and December 2026. Following this transaction, the put option for the remining 40% is exercisable between April 2025 and December 2026.