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  • You are here:M&A

SNC could still face rival in £2.1bn bid for Atkins – analyst

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.

SNC could still face rival in £2.1bn bid for Atkins – analyst

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