Spanish-controlled construction giant CIMIC has launched a $524 million takeover bid for its ASX-listed rival UGL.

The former Leighton Holdings on Monday said it had taken a 13.8 per cent stake in UGL and made an unconditional offer of $3.15 per security for the remainder, giving shareholders a 47.2 per cent premium on the $2.14 share price at Friday’s close.

The Foreign Investment Review Board has already approved the unconditional offer, according to CIMIC, which is 71.88 per cent owned by Spanish-controlled German firm Hochtief.

CIMIC, which said it has funds available to more than cover the purchase and its transaction costs, plans to delist UGL if it gains control of the company.

It added that the competition watchdog does not intend to conduct a public review into the takeover.

“CIMIC believes UGL’s competencies are complementary to CIMIC’s existing operations or enhance CIMIC’s capabilities in new activities,” CIMIC said in a statement.

CIMIC said that, while it would reconstitute the UGL board, it aimed to retain the smaller company’s employees and move those whose roles are no longer needed elsewhere within CIMIC.