Foster Wheeler AG has announced that it has entered into a definitive agreement with AMEC plc pursuant to which AMEC will make an offer to acquire all the issued and to be issued share capital of the company. Under the terms of the offer, AMEC will offer to exchange for each outstanding share of Foster Wheeler common stock transaction consideration consisting of 0.8998 shares of AMEC stock and US$ 16.00 in cash.
Separately, Foster Wheeler expects to pay a one time dividend of US$ 0.40 per share prior to, and not conditional on, the closing of the offer. The company expects that there will be no Swiss withholding taxes on the dividend.
A new combination
‘Both companies have strategies that are highly focused on growth, and our combination will help deliver on Foster Wheeler’s key strategic objectives: establishing material positions in upstream and minerals and metals, building positions in growth geographies and extending our services offering,’ said Kent Masters, President and CEO of Foster Wheeler.
Specifically, the combination is expected to result in a company with:
- Complementary and more competitive market positions in offshore and onshore upstream oil and gas, gas monetisation, refining and chemicals, minerals and metals, power and clean energy, environment & infrastructure and pharmaceuticals.
- An expanded, geographically diverse global presence, with offices and projects in more than 50 countries.
- A material increase in capacity, with a total headcount of more than 40 000 employees.
- A strong financial profile, with annual pro forma revenues of approximately US$ 10 billion and backlog of approximately US$ 10 billion.
Adapted from a press release by Claira Lloyd.
Read the article online at: https://www.oilfieldtechnology.com/exploration/13022014/foster_wheeler_amec_difinitive_agreement157/