Amec to buy Foster Wheeler for £2bn
13 Feb 2014
Amec today made a formal offer to acquire rival oilfield services firm Foster Wheeler for $3.3 billion (£2bn).
The announcement came just a month after Amec confirmed it had provisionally agreed a cash-plus-shares deal with the US-listed firm.
The combination positions us across the whole oil & gas value chain
AMEC chief executive Samir Brikho
Foster Wheeler shareholders will receive 0.9 of an Amec share and $16 in cash for each share they own. The deal will enable Amec to gain a foothold in the midstream and downstream segments of the oil & gas market in addition to its current upstream expertise.
“The combination positions us across the whole oil & gas value chain, provides scale in our Growth Regions and is expected to be double-digit earnings enhancing in the first twelve months,” said AMEC chief executive Samir Brikho.
“The offer has been unanimously approved by the boards of both companies and is a compelling opportunity for all shareholders, customers and employees.”
Amec expects the deal to produce annual cost savings of at least $75 million, as well as helping the firm strengthen its presence in growth regions for oil & gas such as Latin America.
Completion of the takeover, which is subject to regulatory approval, is expected to complete in the second half of the year.
