Arcadis rejects second WSP bid worth £3.7bn

Arcadis has rebuffed a second bid from rival WSP, which valued the Dutch firm at €4.4bn (£3.7bn),

The firm, which is listed on the Dutch Stock Exchange, Euronext Amsterdam, said its executive board and supervisory board had unanimously rejected a €51.50 (£44.12) per share offer.

The proposal, which Arcadis described as “unsolicited, conditional, and non-binding”, came after a previous bid worth €48.50 (£41.5) per ordinary share.

Arcadis said the boards’ financial and legal advisers had assessed that WSP’s latest offer “continues to fundamentally undervalue Arcadis’ intrinsic value, strategic position, and future prospects” and that, “accordingly, it is not in the best interest of the company’s shareholders, employees, clients and other stakeholders”.

As well as contending that the offer fundamentally undervalued the business, it noted the large stock component, with roughly half of the consideration consisting of WSP shares. 

“This meaningful stock component represents a materially different risk profile to our shareholders compared to a standalone Arcadis investment, including significantly higher than anticipated leverage and lower than expected dividend yield,” it said.

It also said the revised proposal entailed “material uncertainty regarding deal execution and timing, execution of strategic plans, cultural fit, and integration risks”, noting potential adverse consequences for Arcadis’ shareholders, employees, clients and other stakeholders.

Heather Polinsky, CEO of Arcadis, said: “Our H1 2026 performance demonstrates that our growth trajectory is moving in the right direction. With a record backlog and clear momentum in our key markets, we are confident that our standalone strategy is the most effective path to creating value for our shareholders and stakeholders as we deliver on our stated medium-term financial targets.”

Founded in 1888, Arcadis has around 34,000 employees worldwide with just over 4,000 based in the UK with the firm’s head office at 80 Fenchurch Street. Last year it had revenue of €4.9bn (£4.2bn).

Arcadis bought EC Harris in 2011 and three years later bought Hyder for around £300m.

WSP is headquartered in Montreal, Canada, and listed on the Toronto Stock Exchange. It employs around 75,000 people and last year had a revenue of CA$18.3bn (£9.8bn). It has 10,000 employees in the UK and Ireland.