AMEC and Agra merge in a £221million deal
7 Apr 2000
AMEC and Agra have agreed to merge the two groups to create a leader in the provision of design, services, applied technology and project delivery in the global engineering, construction and environmental industries.
The merger claims to create a top three ranking global engineering design firm, behind Fluor Daniel and the Bechtel Group. The rationale behind the merger consolidates a client base and combines the complementary businesses of the two groups consistent with their own stated strategies.
AMEC chief executive, Peter Mason, said: `This merger will advance the strategic objectives of our two groups. These are remarkably aligned and with very similar management cultures.' AMEC had been exploring likely partnerships since last year as reported in PE (June 1999).
The boards of directors of AMEC and Agra have unanimously approved a definitive merger agreement. The merger will be effected under a plan of arrangement in Canada and is subject to approval by the shareholders of both companies.
The merger will be achieved through a cash and share offer by an AMEC group company which values each Agra share at C$16 and Agra at C$514 million (£221 million). Canada-based Agra provides services in Canada, US and 22 other countries. The transaction represents the first time that Canadian shareholders have been offered the opportunity to hold exchangeable shares in a UK-based company.
During the offer period AMEC will announce its full year results to 31 December 1999 and Agra will announce its second quarter results to end of January 2000.
