Canada’s SNC-Lavalin has agreed to buy Jersey-based oil and gas services company Kentz Corporation in a deal valuing the Kentz at £1.2 billion (C$2.1 billion).
SNC-Lavalin said the move was part of its strategy to become a global Tier-1 engineering and construction company. The move would also give it greater presence in key growth regions, including the Middle East, North America and Asia Pacific, and Australia, said SNC-Lavalin.
Robert G. Card, President and CEO, SNC-Lavalin Group the firm’s two oil and gas teams would be merged under the leadership of Christian Brown, Kentz’s CEO.
Kentz has 14,500 staff in 36 countries providing engineering, construction and technical support services to clients in the oil and gas sector. Post-acquisition, SNC-Lavalin’s headcount will be about 44,500, with 18,500 dedicated to the oil and gas sector.
The move follows another proposed major corporate acquisition, announced Sunday. Directors of France’s Alstom recommended an offer from General Electric (GE) to buy Alstom’s power and grid business. The agreement followed revised offers from both GE and Siemens and Mitsubishi Heavy Industries (MHI).
Siemen’s today said it’s big was “verifiably the better offer” and that French Government national interests had led the decision to recommend the GE offer.
If GE’s revised offer is approved, GE will acquire Alstom’s Thermal Power, Renewable Power and Grid Sectors, as well as corporate and shared services, and following completion, Alstom and GE will establish joint ventures in Grid and Renewable Power.
In Grid, each company would hold a 50% stake in a global business combining Alstom Grid and GE Digital Energy. In Renewables, each company would hold a 50% stake in Alstom’s Off-shore Wind and Hydro businesses.
In addition, Alstom and GE will create a 50/50 Global Nuclear and French Steam alliance. In addition, the French State would hold a preferred share giving it veto and other governance rights over issues relating to security and nuclear plant technology in France.
Finally, GE proposed the creation of a global alliance in which GE would sell Alstom 100% of its signaling business, with sales of ca. US$500m in 2013 and 1200 employees, and the companies would sign multiple collaboration agreements including a service agreement for GE locomotives outside of the US, R&D, sourcing and manufacturing and commercial support in the US.
If the offer is approved and completed, Alstom will refocus on its fully owned transport activities and on its Energy alliances with GE, the firm said.
Siemens today said it “understands the national interests of the French government regarding the reorganization of Alstom,” adding that it and MHI “verifiably the better offer with respect to industrial and strategic sustainability, as well as regarding financial and social aspects.
“But the safeguarding of national interests is a matter of the State," said Joe Kaeser, President and CEO of Siemens
Subscribe
