ZUG, Switzerland – Foster Wheeler AG (NASDAQ:FWLT) has agreed provisionally with AMEC plc on a non-binding outline of terms regarding possible combination of the two companies.
A definitive agreement is subject to mutual agreement on definitive terms, due diligence, and approval of each company’s board of directors.
AMEC says its possible offer has a value of $3.2 billion.
“The combination of our two businesses, AMEC and Foster Wheeler, would be financially and strategically attractive. As well as positioning us across the whole oil & gas value chain and providing scale in our Growth Regions, we would expect double-digit earnings enhancement in the first twelve months. I believe it would be a compelling proposition for our shareholders, customers and employees,” says Samir Brikho, CEO of AMEC.