Canadian engineering group SNC-Lavalin has agreed to purchase rival British firm WS Atkins for £2.1 billion.

The deal will create a multi-billion dollar global professional services and project management company with 53,000 employees.

SNC-Lavalin values the company at 2080 pence per share, a 35% premium on last Atkin's closing share price.

Neil Bruce, President and Chief Executive Officer of SNC-Lavalin, said: "We are very pleased to announce this proposed acquisition that is fully aligned with our growth strategy, creating a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance.


"By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients."

Allan Cook, Atkins' Chairman, added: "On behalf of our Board I am pleased to announce SNC-Lavalin's recommended cash offer to our shareholders. Having achieved our strategic target of 8% operating margin, the Atkins Directors believe that Atkins is strongly positioned to execute on its growth strategy going forward. This position is underpinned by favourable trends in our end markets, our differentiated offering, and the benefits of our new growth initiatives, including our Acuity advisory business, our positioning in the nuclear value chain and our focus on digital and technology.

"However, we believe that the offer from SNC-Lavalin represents an attractive and certain value in cash today for Atkins shareholders reflecting the high quality of the business, its people and its future prospects. The Board of Atkins believes that a combination will provide clear benefits to our shareholders, enhanced opportunities for our employees as part of a larger group, and a broader service offering for our customers."

(LM/MH)