Canadian giant SNC could still face a rival to its £2.1bn bid to acquire Atkins, an analyst has claimed.
The two firms have agreed terms on a deal, it was announced late yesterday, with SNC offering £20.80 per share for the London-based design and engineering consultancy.
However, Liberum analyst Joe Brent said SNC could still face a rival bidder or Atkins shareholders might wait for a bigger bid from the Canadian firm.
“We believe it is extremely likely that Atkins is acquired, but we believe that there is still a prospect that shareholders hold out for a higher bid from SNC or that an interloper appears,” the analyst said in a note.
SNC has agreed to pay Atkins a £50m break-fee if the deal collapses.
A merger between SNC and Atkins would lead to a combined workforce of 50,000 staff and global revenue of more than £7bn.
The acquisition is set to be funded by a combination of debt and equity, including an £870m loan and a £350m draw on its current credit facility.
SNC-Lavalin said it expects the acquisition to be completed by the third quarter of 2017, subject to its approval by shareholders.
Shares in Atkins were up around 5 per cent in mid-morning trading in London today.