Mega-Merger in Plant Engineering AMEC Wants to Buy Foster Wheeler
British engineering group AMEC has placed a € 2.3 billion offer for its competitor Foster Wheeler. The transaction would create a € 5 billion engineering giant…
London/United Kingdom – It would be a union of giants: AMEC, with its expertise in upstream projects in oil and gas and Foster Wheeler who are involved in some of the biggest petrochemical projects could become one engineering behemoth. Although no binding offers have been made, AMEC has recently announced an interest to buy Foster Wheeler shares for 0.9 new AMEC shares for each existing one plus US $ 16, valuing Foster at US $ 32/share. This price is around 12.8 percent above the price in November 2013, when rumours about a merger interest first leaked.
Foster Wheeler could complement AMEC’s existing downstream portfolio nicely, as the Swiss-American engineering experts have a reputation for mid- and downstream projects in chemical and petrochemical industries. Furthermore, while AMEC has a strong presence in Europe and North America, Foster Wheeler is involved in projects in growth markets such as South America and the Middle East.