Mumbai, March 15 (IANS) Hindustan Construction Co Friday said it will acquire 66-percent stake in Karl Steiner AG, the second largest integrated services contractor in the Swiss realty market, for nearly $33 million.

The acquisition will not only give Hindustan Construction access to the European market but also help its entry into the $16.5 billion integrated building construction industry in India, the company said.

'This acquisition has been carried out on the grounds of strategic fit both to capture local market opportunity and to provide us with a presence of European expansion,' the company's chairman and managing director Ajit Gulabchand said at a press conference here.

'The Swiss company's rich history and expertise in total service contracting will allow Hindustan Construction to undertake the development and construction of some world class residential and commercial spaces on a turnkey basis in India.'

The Indian company has received its board's approval for acquiring the stake by issuing new shares and it will be an all-cash deal. 'The transaction is subject to regulatory approvals in Switzerland and India and is scheduled to close in the first quarter of 2010-11.'

By 2014, Hindustan Construction expects to acquire a 100-percent stake in the Swiss firm, buying out its sole owner Peter Steiner at a pre-agreed price based on the revenues logged till 2013.