SNC-Lavalin approaches WS Atkins in UK

The biggest company of engineering and construction based in Montreal (Canada), SNC-Lavalin Group has made a bid to buy WS Atkins, specializing in design, engineering and project management consultancies in UK for £ 2.08 billion ($2.6 bn).

As part of the strategy to strengthen and expand its global reach, SNC Lavalin had made an offer of 2,080 pence a share, a level that the board would be prepared to recommend. By adding Atkins to its foothold in Europe, SNC would significantly diversify its service portfolio away from oil and gaz.

The funding of this agreement will involve the Caisse de Depot et Placement du Quebec which is the second biggest pension fund in Canada, the latter will contribute up to C$ 1.9 billion ($1.4 bn). This amount will break down as follows C$ 400 million in equity and a C$ 1.5 billion non-recourse loan secured by the value and cash flows of SNC’s stake in Ontario’s Highway 407.

WS Atkins will provide in this agreement its know-how in engineering, design and project management for transportation infrastructure as SNC’s projects include mostly highways, power plants, train lines and the Champlain bridge from Montreal to the south shore of the St. Lawrence River.