Fcc Financial Analysis

FOMENTO DE CONSTRUCCIONES Y CONTRATAS S.A.

1 – Company Overview

Fomento de Construcciones y Contratas (FCC ) is a Spanish business group created through the merger of Construcciones y Contratas and Fomento de Obras y Construcciones. This is one of the leading companies in our country and it is currently listed on the IBEX 35 .

The principal activities of the company are: Infrastructure, Services and Energy. The first one is divided at the same time into construction, cement manufacturing, real estate and industrial concessions and projects. On the second place, services business is fragmented in industrial waste management and water, street furniture and environmental services. And thirdly, the energy division that focuses solely on three types of energy: wind, solar thermal and photovoltaic.

FCC is present in 35 countries worldwide. It has 60,000 employees and last year had a net turnover of more than 11,000 million euros, with 42% of business from international markets. The main markets in which it operates are North and South America, the European Union, North Africa and South and East Asia.

FCC 's strategy in recent years and which currently still remaining consist basically on further increasing diversification and international expansion of its three activities. In addition we should not forget the fundamental role of innovation, experience and sustainability as differentiating factors over its competitors.

Fomento de Construcciones y Contratas has a market capitalization of EUR 2,060 million at March 28, 2014 . With one hundred twenty-seven million, three hundred and three thousand shares. And a market price of 16.18 euros per share.

2 – M&A ACTIVITY

Operations in “Mergers and Adquisitions” have been part of FCC’s main activity since the beginning of its years. Indeed because FCC itself was as well born from the merger between Construcciones y Contratas and Fomento de Obras y Construcciones as already mentioned above. This paper will...