Canadian engineering giant SNC-Lavalin has announced a $3.6 billion deal to takeover WS Atkins PLC.

It was reported yesterday (April 20) that the firms had agreed a £20.80 per share deal, representing a total of $3.6 billion (around €3.36 billion).

The deal will create a $12.1 billion global company with 53,000 employees, bringing together two of the world’s leading rail and mass transit engineering consultants.

Subject to further approval, the acquisition, which will be funded through a combination of equity, debt issuance and a loan from CDPQ, is expected to be complete by September 2017.

SNC-Lavalin says that it does not expect jobs to be lost in Atkins but is expected to deliver $120 million cost savings by the end of the first full financial year.

Neil Bruce, SNC-Lavalin president and CEO, said: “By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients.

“It also creates new revenue growth opportunities in key geographies by positioning us to capitalise on increased cross-selling and the opportunity to win and deliver major projects in new regions.

“Together, we will become part of a larger global organisation that will open the door to new opportunities for further growth and development.”