The new combination will create one of the top ten construction companies in Europe, with a pro forma turnover of 8.5 billion last year.

Royal BAM NBM's turnover for 2001 was ?2.9 billion while HBG achieved ?5.6 billion.

Royal BAM NBM expects the acquisition to strengthen its position in its native Benelux region while adding new markets in Western Europe and America.

Through HBG's two-thirds stake in Ballast HAM Dredging, Royal BAM NBM acquires one of the world's largest dredging operations, with vessels deployed everywhere from home market maintenance works to vast capital dredging projects such as the Pennys Bay land reclamation which is creating the location for a new Disneyland in Hong Kong.

The proposed acquisition is unanimously supported by the Executive and Supervisory Boards of HBG and the transaction is expected to be completed early next month.

MJ Information No: 17204