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Canada's WSP Global Reconfirms 'Friendly' Takeover Offer for Arcadis

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Canada's WSP Global Reconfirms 'Friendly' Takeover Offer for Arcadis

WSP Global affirmed on Thursday its intention to pursue a merger agreement with Arcadis (ARCAD.AS) despite the target's refusal to engage in a "friendly" takeover transaction.

The Canadian engineering and professional services consulting firm reiterated its belief that the transaction would be beneficial for both parties and their respective stakeholders. It listed the possibilities of improvements in scale, diversification, synergies and geographic platform across North America, Europe and Australia as among the benefits of a potential merger.

In late July, Arcadis said its boards rejected WSP's second unsolicited and conditional proposal of 51.50 euros in cash per ordinary share plus stock, citing undervaluation concerns and execution risks, among others. That offer was already sweetened from the initial proposal of 48.50 euros in cash per share plus stock.

Despite the rejection, WSP said it decided to proceed with an offer memorandum, which it intends to file with the Dutch financial market regulator for review and approval no later than Oct. 15. The decision comes as Arcadis' boards have refused to engage with WSP after multiple invitations for negotiations over the past several months.

"WSP believes that the strategic rationale, value creation opportunity and beneficial impact on all stakeholders underlying a combination of Arcadis and WSP can only be fully realized through a negotiated transaction supported by the Arcadis boards," the offeror noted.

Arcadis shares declined marginally in Amsterdam in early morning trading.

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