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.

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