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Moroccan construction firm TGCC secures $430 million stake in STAM

Moroccan construction firm TGCC secures $430 million stake in STAM
Thursday 20 February 2025 - 08:20 By: Dakir Madiha
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TGCC (Travaux Généraux de Construction de Casablanca) has signed an agreement to acquire a 60% controlling stake in STAM (Société de Travaux Agricoles Marocains), in a deal valued at MAD 4.3 billion ($430 million). The transaction includes STAM's 55% ownership of VIAS SA, with plans to increase this stake to 80% through a capital increase.

The acquisition, expected to close in the second quarter of 2025 pending Competition Council approval, combines TGCC's building construction expertise with STAM Group's infrastructure capabilities. Louis Raymond Baudrand will retain his position as Chairman and CEO of STAM Group after the transfer of control.

STAM, founded in 1965, has transformed from its agricultural development roots into a major construction entity, generating revenue of MAD 3.7 billion ($370 million) in 2024. The company specializes in public works, road construction, and environmental development projects, including water supply, dam construction, and general earthworks.

Its subsidiary VIAS, established in 2019, focuses on urban development and has contributed to significant infrastructure projects, including the tramways of Rabat-Salé and Casablanca. TGCC brings over three decades of experience with more than 1,000 completed projects across Morocco and Africa in sectors ranging from hospitality to residential development.

Following the announcement, TGCC shares were suspended on the Casablanca Stock Exchange. The merger aims to enhance both groups' international market presence and competitiveness, particularly in industrial construction and development. TGCC has confirmed securing the necessary financing for the acquisition.

The consolidation marks a significant development in Morocco's construction and public works sector, bringing together complementary expertise in building construction and infrastructure development to meet growing market demands.

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