Global engineering and construction firm SNC-Lavalin is set to take over its UK rival WS Atkins.
Canada-based SNC-Lavalin has offered to buy WS Atkins for a total amount of around £2.1 billion (C$3.6 billion), or £20.80-a-share.
The Atkins directors have endorsed the offer, deeming it “fair and reasonable,” and will unanimously recommend the shareholders to accept it.
The acquisition is expected to become effective in the third quarter of 2017.
In a joint statement on Friday, the two companies said the Acquisition would create a C$12.1 billion global fully integrated professional services and project management company with 53,000 employees and „significantly improve SNC-Lavalin’s overall margins, and further balance its business portfolio.“
SNC-Lavalin expects the move will enhance it global position and addressable market ininfrastructure, rail & transit and nuclear, combine two highly complementary businesses and increase both geographic reach and customer diversification globally. The combined entity will continue to have its head office in Montreal, Canada.
Commenting on the announcement, Neil Bruce, President & CEO of SNC-Lavalin, said: “We are very pleased to announce this proposed acquisition that is fully aligned with our growth strategy, creating a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance.
“By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients. It also creates new revenue growth opportunities in key geographies by positioning us to capitalize on increased cross-selling and the opportunity to win and deliver major projects in new regions. I look forward to welcoming Atkins’ employees into our combined company. Together, we will become part of a larger global organization that will open the door to new opportunities for further growth and development.”