Jacobs Engineering has acquired CH2M for £2.1 billion, it has been announced.

The deal will see the creation of a 74,000-strong global workforce to deliver work to more clients in both the government and private sector.

CH2M is behind a number of UK projects, including the refurbishment of the Palace of Westminster as well as work on the multi-billion HS2 scheme.

Steve Demetriou, Jacobs' Chairman and Chief Executive Officer, said: "By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs' position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm.

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"CH2M brings to Jacobs a talented, engaged team with capabilities and values that are very complementary to our own. Together, we will bring more solutions to our clients, give more opportunity to our employees and create increased value for Jacobs' shareholders."

Jacobs has also identified around £113m in cost savings by combining the two companies.

CH2M Chairman and CEO Jacqueline Hinman said: "We are delighted about the prospects of combining CH2M with Jacobs.

"Since late 2014, we've been transparent about our plans to pursue an ownership transition, providing sustained access to capital for growth. Considering all of the options, we focused on securing greater opportunities for our employees, delivering superior value to our clients and enhanced value for our stockholders, all while continuing to serve the higher purpose our company is known for, providing sustainable solutions for a better world."

(LM)