Listed UK engineer’s shares soar on takeover approach from SNC-Lavalin
Shares in Atkins have leapt 29% today after the UK engineer confirmed it was in talks with Canadian consultant SNC Lavalin over a possible £2bn takeover.
The Montreal-based firm has made an offer for Atkins - which last year posted revenue of £1.8bn and pre-tax profit of £131.1m - which the UK firm’s board said it was ready to recommend subject to certain conditions being agreed.
SNC Lavalin is involved in a range of infrastructure projects across the world, including developments in the North Sea, as well as the Timetable Advistory System for UK railways.
The Canadian firm turned over C$8.5bn (£5.1bn) in 2016, with 44% of its activity by sales in Canada, and 5% in Europe.
Sector-wise, almost half of the firm’s business is in oil and gas, while it also covers the infrastructure and power sectors.
SNC-Lavalin has until 1 May to make a firm offer.
Atkins, run by chief executive Uwe Krueger (pictured), added: “There can be no certainty that a firm offer will be made, nor as to the terms on which any firm offer might be made.”
Atkins and SNC Lavalin - how they size up
|Pre-tax profit **||£139m||£152.7m|
|Earnings per share||107.3p||101.6p|
*SNC Lavalin financials translated as C$1.67 = £1
** SNC Lavalin shows net income attributable to shareholders
Year-ends - Atkins: March 2016; SNC Lavalin: December 2016