AMEC inks $3.2-bn pact to acquire Foster Wheeler

AMEC has entered into a non-binding, $3.2-billion cash and shares agreement to acquire its Switzerland-based rival Foster Wheeler AG. Under the proposed terms, Foster Wheeler’s existing shareholders would own approximately 23% of the combined company, and it is expected that two members of Foster Wheeler’s board would join the board of directors of AMEC as non-executive directors.
 
In connection with their negotiations, Foster Wheeler has agreed with AMEC not to solicit alternative proposals through February 22, 2014. If the deal goes through, Foster Wheeler's capabilities in the refining and processing of oil and gas will complement Amec’s business in exploration and production.
 
Foster Wheeler is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 professionals with specialised expertise dedicated to serving its clients through one of its two primary business groups. Foster Wheeler’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, minerals and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. Foster Wheeler’s Global Power Group is one of the global leaders in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services.