WS Atkins agrees to takeover by SNC-Lavalin

SNC-Lavalin Group Inc.is expanding its global consulting, design and project management capabilities with the takeover of United Kingdom -based WS Atkins Plc.

This values Atkins at £2∙1bn and represents a premium of 35% on the closing price of its shares on March 31.

SNC's funding will also include an $800 million public bought-deal offering, the company said.

About $120 million in cost savings are expected one year after the acquisition. Shares in WS Atkins closed at 1,982.00p on Thursday in London.

Subject to approval by Atkins shareholders, who are being recommended to accept the offer by the board, the acquisition is expected to become effective during Quarter 3 of 2017.


The combination creates a global company specializing in professional services and project management with C$12.1 billion in revenues and 53,000 employees. Tracing its roots back to 1938, Atkins today has 18,000 employees with revenues of approximately £2.0 billion in 2016, and is geographically diversified in the US, Middle East and Asia, together with a leading position in the United Kingdom and Scandinavia.

SNC-Lavalin said the combined entity would be able to capitalise on the significant investment being made in infrastructure projects around the world, but said this was particularly true in North America at present.

Bruce said the addition of WS Atkins will increase margins and improve SNC-Lavalin's position in infrastructure, rail and transit, and nuclear by capitalizing on large-scale infrastructure projects in North America and nuclear maintenance and decommissioning projects. However chief financial officer Heath Drewett is understood to have been offered the role of head of Atkins within the combined entity.

Shareholders will have to approve the deal at a general meeting, which will be followed by a court meeting as the takeover will be facilitated by a court-sanctioned scheme of arrangement.

The Acquisition values Atkins' entire issued and to be issued ordinary share capital at about 2.1 billion pounds or C$3.6 billion.


Popular
  • Trump says he will release tax reform package next week

    Trump says he will release tax reform package next week

    Trump's order directs Mnuchin to determine if the authority could lead to costs for the Treasury, and hence to taxpayers. Neither senior official offered specific details of what the administration's plan might look like.

    Handel Celebrates 6th District Results, Gets Ready For Runoff

    She added that when it comes to balancing the budget and repealing Obamacare, both Handel and Trump are for the people. In Georgia, US Democrats have narrowly missed an opportunity to cause great upset to President Donald Trump.

    'Find my iPhone' helps nab prolific Coachella smartphone thief

    They followed the 36-year-old, from NY , through the venue until he was detained by security and law enforcement alerted. Numerous phones were returned to their owners with the remaining devices being handed in to Coachella's lost property.
  • Washington threatens funding cut to California, other 'sanctuary' areas

    Washington threatens funding cut to California, other 'sanctuary' areas

    Justice Department records show New Orleans received almost $266,000 in grant money through the program in fiscal 2016. Both the city and county support legal efforts challenging Trump's executive order on sanctuary cities.

    Iraqi soldiers hit by Islamic State gas attack in western Mosul

    An Iraqi military officer says Islamic State militants have launched a gas attack in a newly liberated area in western Mosul . The UN estimated that another half million civilians were still in ISIS-controlled areas of west Mosul .
    'Shadow Of An Animal' Sneaks Into Woman's Bedroom And Snatches Dog

    'Shadow Of An Animal' Sneaks Into Woman's Bedroom And Snatches Dog

    The family shows a video of their dog, who was apparently snatched by a mountain lion early Monday morning. But Ms Fought and her daughter are astonished that a mountain lion could have been so bold.
  • Apple Wants To Make Your iPhone A Lot More Eco-Friendly

    While this is great for Jobs' Mob, it means that users are forced to buy new gear, which places a strain on the environment. The "renew" programme primarily targets Apple's own products but also accepts mobile phones from other manufactures.
    Three New iPhones Coming; Release Possibly Delayed

    Three New iPhones Coming; Release Possibly Delayed

    In addition, Macotakara believes that the rumored vertical dual camera orientation on the back will make VR features possible. Japanese blog, Mac Otakara has published a report about the latest rumours of Apple's upcoming handset, the iPhone 8.
    Panthers sign DT Kawann Short to 5-year extension

    Panthers sign DT Kawann Short to 5-year extension

    The Panthers announced Monday that the team signed Short, who is now under contract with the Panthers through the 2021 season. Short could have signed the franchise tag and played the 2017 season under it, but instead he signed the five-year deal.
  • Netflix nears 100 million subscribers worldwide

    Netflix nears 100 million subscribers worldwide

    But if it wants to keep investors happy, the company will eventually have to improve its relatively low profit margin. Analysts predict Netflix will make $482 million on revenue of more than $11 billion for the entire year.

    La La Anthony separates from NY Knicks basketball star

    The site added he is concerned about his son, and does not want to uproot him from his school in New York City if he is traded. There have been reports of marriage difficulties the past few months involving Carmelo's in-question New York Knicks career.

    Workers Relieve Pressure On Leaking Alaska Oil Well

    In 2006, a corroded pipeline released almost 5,000 barrels of crude oil, the largest oil spill in the North Slope at the time. Alyeska is a joint partnership led by the North Slope's top producers, BP Plc, Exxon Mobil Corp. and ConocoPhillips .

CONNECT