UKs Amec to buy Swiss engineering competitor Foster Wheeler for 2 bn

Written by Reuters | London | Updated: Jan 14 2014, 20:03pm hrs
British oil and gas engineering firm Amec has agreed to buy Swiss-based rival Foster Wheeler for 1.9 billion ($3.13 billion), the first sizeable acquisition in the sector for three years.

Amec said the deal would increase its position and help more than double revenues in growing markets such as Latin America and the Middle East. The firm, which provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors, said the acquisition would also add oil and gas transport and refining capabilities to its existing extraction facilities.

The deal, expected to complete in the second half of 2014, will end a drought of major transactions in a sector where targets high growth forecasts have fuelled shareholders expectations of big takeover premiums, making it difficult for firms to agree on price.