British engineer AMEC has put forward their formal plans for acquiring rival contractor Foster Wheeler, following the provisional deal terms agreed last month.
The $3.3 billion deal is part cash and part equity offer and once the companies are combined they will have annual pro forma revenues of $10 billion and a backlog of approximately $10 billion.
AMEC’s motivations behind the deal can be attributed to the ‘more competitive’ market positions in offshore and onshore upstream oil and gas, gas monetisation, refining and chemicals, minerals and metals, power and clean energy, environment & infrastructure and pharmaceuticals that they would become a part of.
In addition, the acquisition would further expand AMEC’s global reach with offices and projects in more than 50 countries.
The key markets that AMEC will be focusing growth in are Oil & Gas, Mining, clean energy and environment & infrastructure.