AMEC plc and Canadian based AGRA Inc. have reached an agreement to merge. The merger will create an international group providing design, services, applied technology and project delivery to the global engineering, construction, and environmental industries. Combined revenue will be approximately £3.8 billion from continuing operations.

AGRA is an international professional services group, based in Canada and specialising in engineering, construction, environmental and technology solutions. AMEC, the UK-based international capital projects, services and investments group, has a total market capitalisation of £630 million.

The two companies say that the combination of complementary businesses with very similar strategies and cultures should produce significant revenue, skills and technology synergies. The enlarged group will be a full service provider from consultancy, design, delivery and commissioning through to maintenance and operation, with a presence in Europe, the Americas and Asia.

AMEC Chief Executive, Peter Mason, said: "This merger will advance dramatically the strategic objectives of our two groups. These are remarkably aligned and, with very similar management cultures, I look forward to a successful integration process. We both gain critical new advantages of scale and global reach, together with complementary services and technologies. It should deliver value to our shareholders, customers and employees world-wide."

The AMEC group includes AMEC Facilities and is believed to be one of the two remaining bidders for BT's huge Project Jaguar outsourcing deal (the other is Carillion/Servus) on which a decision is expected soon.

Read more about the merger on www.amec.co.uk

Anna Lagerkvist