Montreal-based engineering and construction firm SNC-Lavalin has expressed interest in acquiring UK-based engineering firm Atkins Global for cash consideration of £2.08 billion (US$2.6 billion).
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| Neil Bruce, President & CEO, SNC-Lavalin |
The Canadian company said that an offer would be subject to the satisfaction of a number of pre-conditions including, but not limited to, due diligence to the satisfaction of SNC-Lavalin, and the recommendation of the board of Atkins. SNC-Lavalin has until 1 May 2017 to make a firm intention to make an offer, according to the UK's Takeover Code.
Atkins released a statement today (3 April) confirming the news, saying that it has received an indicative offer from SNC-Lavalin at an offer price of 2,080 pence in cash for each Atkins share for the entire issued and to be issued share capital of Atkins.
"The Board of Atkins has indicated to SNC-Lavalin that the possible offer would deliver value to Atkins shareholders at a level that the board would be prepared to recommend, subject to reaching agreement on the other terms and conditions of the offer," today's statement said.
In 2014, SNC-Lavalin purchased Jersey-based oil and gas services company Kentz for £1.2 billion.
According to Deloitte's M&A Trends -Year-end Report 2016, the consulting firm said that it expects merger and acquisition activity to rise in 2017. A possible SNC-Lavalin/Atkins combination would be in line with similar mergers announced this year, including Wood Group's bid for Amec Foster Wheeler announced last month.
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