Amec to buy remaining Foster Wheeler stake

Engineering group Amec will use Swiss 'squeeze-out' merger to acquire an additional 4.7%

Samir Brikho, Amec chief executive
Samir Brikho, Amec chief executive
 

AMEC Foster Wheeler PLC, which has bases across the North East, has entered into a merger agreement with Switzerland’s Foster Wheeler AG to buy the small remaining stake it does not currently hold.

The engineering giant, formerly known as Amec PLC, completed its takeover of Foster Wheeler AG last month, acquiring 95.275% of the business.

Now, the company intends to buy up the remaining 4.725% stake in Foster Wheeler AG through a ‘squeeze-out’ merger under Swiss law. The term refers to a compulsory acquisition of the stakes of a small group of shareholders from a joint-stock company through cash compensation.

Amec Foster Wheeler said that Foster Wheeler shareholders who did not tender into the exchange offer will receive, for each Foster Wheeler share held, a combination of $16 in cash and 0.8998 Amec Foster Wheeler shares.

In a statement, the firm added: “All Foster Wheeler shareholders who are in the share register with voting rights at the close of business on December 15, 2014 are entitled to vote at Foster Wheeler’s extraordinary general meeting to be held on January 19, 2015 to approve the merger agreement and the transactions contemplated therein.”

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