AMEC agrees to buy Foster Wheeler for $3B

Reuters says that British oil and gas engineering firm AMEC has agreed to buy Foster Wheeler for £1.9 billion (US$3.13 billion). The transaction is expected to close in the second half of this year.

AMEC said the deal would increase its position and help more than double revenues in growing markets, such as in Latin America and the Middle East, and also add oil and gas transport and refining capabilities to its existing extraction facilities.

Foster Wheeler will hold shares in AMEC after the deal's completion, representing 23% of the enlarged company, and AMEC will seek a US listing in connection with the transaction.

Foster Wheeler has agreed with AMEC not to solicit alternative proposals up to Feb. 22, and would pay out a one-time dividend of $0.40 per share before closing a deal.

AMEC is being advised by Bank of America Merrill Lynch, while Foster Wheeler is being advised by Goldman Sachs and JP Morgan.


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