UK contractors' acquisitions strategy for central and eastern Europe

Large construction companies operate in geographically diverse locations, often in very competitive conditions and in a dynamic environment. A strategy for continuing growth in earnings is necessary. Acquisitions are a way of achieving external growth. The aim of this paper is to investigate the acquisitions strategies of UK contractors towards the emerging markets of Central and Eastern Europe. Five UK contractors, which had the highest turnover in overseas business, were chosen as the subject group. The paper finds that, although these contractors acknowledge that there is a potential market, they are adopting a very cautious view by not setting up permanent offices and by hoping to win work through contacts with Western clients.