ACS explores takeover of German subsidiary Hochtief, Bloomberg reports

Spanish construction and engineering group ACS is reviewing strategic options for its German subsidiary Hochtief AG, including a potential buyout of minority shareholders, Bloomberg reported, citing people familiar with the matter.

The Madrid-based company is considering several possibilities, including acquiring the remaining shares in Hochtief or merging the two companies, according to the report. ACS currently owns more than 75% of Hochtief.

Another option under consideration would involve listing Hochtief’s U.S. construction arm, Turner Construction Co., on a New York stock exchange as part of a potential restructuring, Bloomberg reported.

Hochtief shares jumped 9.6% in Frankfurt following the report, reflecting investor interest in the possibility of a transaction. The stock had previously traded relatively flat this year, valuing the company at approximately €26.4 billion ($29.4 billion).

The valuation gap between the two companies is notable. ACS has a market capitalization of approximately €23.8 billion, below Hochtief’s standalone market value, despite controlling the German group.

ACS has benefited from the artificial intelligence-driven expansion of data-center infrastructure, with Turner involved in major U.S. projects, including a Meta Platforms campus. The construction group has become an important part of the investment case for both companies as demand for data-center capacity has surged.

ACS shares reached a record high in May before retreating approximately 39% amid concerns about the sustainability and pace of AI infrastructure investment.

The discussions remain at an early stage and may not lead to a transaction, Bloomberg reported. Representatives for ACS and Hochtief declined to comment.