Engineering giant Amec has confirmed details of its £2billion takeover deal for Swiss energy industry contractors Foster Wheeler.
The move comes as the company saw increased earnings and steady profits for 2013, thanks to success from its operations in the North Sea.
Pre-tax profits at Amec were £255million, £1million up on the year before, with earnings up 3% to £343million.
European revenues for the firm were up 14% to £1.23billion, with oil and gas operations in the North Sea the main driver. The order book for the year reached £4.1billion.
“As expected, strong performances from our oil & gas businesses in UK North Sea and the Middle East and from US renewables offset weaker markets elsewhere,” said chief executive Samir Brikho.
“We continue to expect good underlying revenue growth in 2014, with ongoing strength in the conventional oil & gas and clean energy markets.
“I am delighted we have announced separately this morning the firm offer for Foster Wheeler.
“The combination with Foster Wheeler is financially and strategically attractive. I believe it is a compelling proposition for our shareholders, customers and employees.”
The Foster Wheeler takeover, which would be financed through new debt and existing cash resources, would give the engineering group a significant footprint in the midstream and downstream sectors to sit alongside the company’s existing upstream focus.
The deal, which Amec said would generate at least £45million in annual savings, requires approval of the company’s shareholders before going ahead.
Foster Wheeler chief executive Kent Masters said: “Both companies have strategies that are highly focused on growth, and our combination will help deliver on Foster Wheeler’s key strategic objectives: establishing material positions in upstream and minerals and metals, building positions in growth geographies and extending our services offering.”
Recommended for you
