A Chinese firm is set to buy leading engineering company John Holland in a deal valuing the business at $1.15 billion.
The company's parent, Leighton, has agreed to sell the contracting and services firm to CCCC International, a wholly-owned subsidiary of China Communications Construction Company, one of the world's largest builders.
CCCI president Lu Jianzhong said the acquisition of John Holland was an optimal way for the company to play a role in Australia.
"We believe there are very significant growth opportunities in the Australian market," he said.
"For customers, employees and suppliers it will be very much business as usual but with the added benefit of the resources of CCCC to support them."
About 4,100 staff are expected to transfer from Leighton to CCCI as a result of the deal.
John Holland managing director Glenn Palin said the company's new owners shared its values and would assure the delivery of its innovative projects.
The sale deal values John Holland at about $1.15 billion, subject to certain adjustments.
It requires approval from the Foreign Investment Review Board, but is expected to be completed in the first three months of 2015.
Leighton has been looking to simplify its complex structure since Germany-based, Spanish-owned construction company Hochtief increased its control of the company.
Leighton, a global construction and engineering company, has many subsidiaries that carry out similar work.
Chief executive Marcelino Fernández Verdes said the John Holland sale would strengthen the company's balance sheet, streamline operations and improving project delivery.
It will reduce Leighton's gearing, or debt to equity ratio, by around 10 percentage points, and take around $3.7 billion out of its annual revenue.
"Proceeds will also be used to finance future growth, particularly in PPPs (public private partnerships)," Mr Fernández Verdes said.
Shares in Leighton dropped 14 cents to $21.56.
