Amec and Foster Wheeler

Amec reveals provisional agreement to acquire Foster Wheeler for $3.2 billion in cash and paper. Deal adds mid and downstream to Amec focus.

Following intense public comment, London-headquartered Amec has revealed that it has provisionally agreed to take over Foster Wheeler in a cash and paper deal worth approximately $3.2 billion. If the deal concludes, Foster Wheeler shareholders are to receive 0.9 new Amec shares and $16.00 in cash for each Foster Wheeler share. The deal would enhance Amec’s positioning in oil and gas, adding mid and downstream capabilities to its current upstream focus. An enlarged geographic footprint would ‘more than double’ Amec’s revenues in ‘growth regions’ and bring scale benefits.

On completion, Foster Wheeler shareholders will hold 23% of the enlarged Amec share capital. Amec expects to fund the $1,595 million cash component from its own reserves along with new debt financing. Concomitant with the transaction, Amec will seek a US listing. CEO Samir Brikho said, ‘Combining our businesses would be financially and strategically attractive. We expect double-digit earnings enhancement in the first twelve months. It would be a compelling proposition for our shareholders, customers and employees.’ More from Amec.

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