International engineering and project management company Amec has provisionally agreed terms on a cash and share offer worth approximately $3.2 billion for Swiss-based engineering, construction and equipment supplier Foster Wheeler.
Although Amec focused on the benefits to its oil and gas value chain from the possible merger, both companies have interests in nuclear projects.
Amec's nuclear division offers a range of nuclear services from site management through to waste management and decommissioning. It has provided architect engineer services to EDF's UK nuclear new build program and participated in the Sellafield management company Nuclear Management Partners, as well as providing project management, engineering and consultancy services to support major refurbishment work at Canada's Bruce nuclear power plant.
Foster Wheeler's power division offers a range of steam generator equipment, together with aftermarket products and services for fossil fuel and renewable energy facilities, and the company supplies condensers and feedwater heaters for nuclear power plants.
Amec chief executive Samir Brikho described the combination of the two companies' businesses as "financially and strategically attractive".
Although no binding agreement has yet been reached by the two companies, Foster Wheeler has agreed with Amec not to solicit alternative proposals in the period to 22 February, by which time Amec says it expects to have entered into definitive agreements. Completion is anticipated during the second half of 2014.
Researched and written
by World Nuclear News