AMEC, Foster Wheeler investigate possible combination of companies

Foster Wheeler AG has agreed provisionally with AMEC plc on a non-binding outline of terms regarding possible combination of the two companies.

Jan 14th, 2014

Offshore staff

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.

1/14/14

More in Business Briefs