Australia's BGC Group pulls out of sale

Australia’s BGC Group has pulled out of plans to sell the business, marking the second time in the past five years the group has attempted to sell the company with no luck. According to Financial Review, the group’s home building division is its weak spot with tight labour supply and rising costs hitting Australia’s construction industry hard, particularly housebuilding.

Although the group, which operates two grinding plants in Australia, has considered breaking up the company in the past, it was decided to try and sell the entity in one piece. The deal is believed to have been in the second and binding bid phase, having attracted interest from private equity and trade buyers. However, the family shareholders behind the BGC empire decided that this was not the right time to sell and will instead wait for market conditions to stabilise.

“We are not immune to the supply chain and labour challenges that are affecting all Australian builders. This means that now is not the right time to be selling the group,” said Daniel Cooper, CEO at BGC.