Canadian engineering giant SNC-Lavalin has approached consultancy giant Atkins, which employees more than 100 architects, with an acquisition offer
Atkins told the City the two companies were in talks after SNC-Lavalin offered Atkins 2,080p for every share of the company. SNC-Lavalin’s offer values the multinational engineering giant at around £2.1bn.
The company, ranked 10th in last year’s AJ100 league table, said it had indicated to SNC-Lavalin that it would be prepared to recommend the offer to stakeholders subject to reaching agreement on the other terms and conditions of the offer.
Shares in Atkins soared more than 26 per cent yesterday afternoon (3 April) as news of the prospective deal broke.
The Atkins statement said: ’Atkins and SNC-Lavalin are in discussions about the other terms and conditions of the possible offer, which is conditional on, among other things, diligence and financing.’
SNC-Lavalin is required to announce any firm intention to make an offer for Atkins by 5pm on 1 May.
The Canadian firm, headquartered in Qubec, has offices in more than 50 countries and reported £10billin revenue in 2015.
According to a report in The Times, CH2M approached Atkins over the possibility of a merger at the end of last year.
It was unclear how far talks developed between the two firms.
Also at the end of last year, Atkins confirmed it had sold its PFI investment in the scheme to widen the M25.
The consultant sold its 10 per cent investment to Edge Orbital Holdings 2, a consortium advised by Macquarie Capital, for £66.3m.