Amec to buy Foster Wheeler for £1.9m

<p>Amec has offered to buy Foster Wheeler in a cash and share deal worth £1.9 million.</p>

Amec has proposed to buy its Swiss rival Foster Wheeler in a cash and share deal worth £1.9 million.

Under the terms of the deal, shareholders in Foster Wheeler will receive 0.9 new shares in Amec and $16 (£9.73) in cash, which represents $32 for each share in the Swiss company. On Friday, shares in Foster Wheeler closed at $31.46.

Amec says that the deal will raise its geographical profile, more than doubling its revenues in fast-growing areas. This would be due in part to increased exposure to Latin America.

If the deal, which is still subject to shareholder approval, is passed, Amec says it hopes to get a listing on Nasdaq. Foster Wheeler already has a listing on the American stock exchange.

In the first 12 months of the deal, chief executive of Amec Samir Brikho said the company expects to see double digit growth as well as better positioning in the oil and gas value chain.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.