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.
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