AMEC has ditched plans to launch a takeover of offshore engineering firm Kentz, it was confirmed today.
The engineering giant had already had one offer for the Irish-founded firm rejected last month, and was given until September 19 to decide if it would make an improved bid.
But instead it has now ruled out making a move by next week’s deadline – and said it would consider payouts out to investors instead.
“The board of AMEC has concluded that it does not intend to make an offer for Kentz,” the company said in a statement to the stock market this morning.
“AMEC continues to see attractive opportunities to extend its geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC’s position in its markets.
“AMEC will retain its disciplined approach to acquisitions, consistent with its clearly defined strategic and financial criteria. The pipeline of opportunities remains strong, and depending on the progress of acquisitions, additional cash returns to shareholders will be considered in the fourth quarter of 2013.”
Samir Brikho, chief executive of Amec, had said last week the engineering group would consider returning money to investors if it did not make any acquisitions this year.
But the company had set its sights on expansion into Australia, Africa and the Middle East. It had made a £680million offer for Kentz in August, but saw the offer turned down.
Amec said it would not rule out a move making another move for Kentz within the next six months, however, keeping the door open to a possibe future bid.
Kentz is now awaiting a return from M+W, which also failed in a previous move for the engineering group, and also has until September 16 to make a further bid.
“I would like to take this opportunity to reiterate our focus on delivering value to our shareholders,” said Kentz chief executive Christian Brown.
“Naturally, while we have every confidence in our ability to deliver further value to our shareholders as an independent company, the board fully understands its responsibilities to all our shareholders.”
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