Foster Wheeler agrees to Amec takeover

By Chris Sleight13 February 2014

Foster Wheeler and Amec have signed a definitive takeover agreement following Amec’s January 13 offer to acquire the company. The cash and shares deal values Foster Wheeler at US$ 3.3 billion.

Under the terms of the agreement, Amec will offer Foster Wheeler share holders US$ 16.00 in cash and 0.8998 of its own shares for each Foster Wheeler stock. This equates to US$ 32.69 per Foster Wheeler share, a 9.4% premium on the company’s closing price the day before Amec’s initial offer. If the deal goes through, current Foster Wheeler shareholders will end up holding 23% of the combined company.

Kent Maters, president & CEO of Foster Wheeler said, “Both companies have strategies that are highly focussed on growth and out combination will help deliver on Foster Wheeler’s key strategic objectives – establishing material positions in upstream, minerals and metals, building positions in growth geographies and extending our services offering.”

The combined company would have offices and projects in more than 50 countries with more than 40,000 employees providing construction services to the upstream oil & gas, gas monetisation, refining & chemicals, minerals & metals, energy, environment & infrastructure and pharmaceuticals industries. It would have pro forma revenues of some US$ 10 billion and a similar sized order backlog.

The deal is subject to shareholder and regulatory approval and is expected to close in the second half of 2014.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
10 ways to join the hydrogen power revolution
Interest in the use of hydrogen has soared over the past few years as the construction industry races to reduce its carbon footprint. We roundup some recent initiatives
Telescopic boom lifts - the trends
Higher capacities and 100% electric models are the trend. And what lies ahead for 200ft models, or above?
How construction can become sustainable
The construction industry is undergoing a transformative shift to adapt more environmentally friendly practices
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA