WSP has announced that it is backing out of its attempted £3.8bn acquisition of Arcadis after it failed to win support from the Dutch consultancy's board.
The decision to withdraw ends a two-month process, during which Arcadis rejected two unsolicited offers from WSP.
In a statement announcing the decision, WSP said it ‘remains convinced that a combination of WSP and Arcadis would offer a compelling strategic rationale and generate substantial benefits for all stakeholders, including shareholders, clients and employees of Arcadis and WSP', but added that it was ‘unable to engage with Arcadis' regarding the terms of a potential transaction.
‘WSP continues to believe that the value creation opportunity underlying a combination of Arcadis and WSP can only be realised through a negotiated transaction supported by the Arcadis board' it added. ‘Without such engagement, WSP is not positioned to further advance a transaction.'
Alexandre L'Heureux, president and CEO of WSP Global, said: ‘We approached Arcadis with a clear conviction regarding the strategic and industrial merits of a combination between our two organisations. While those merits remain strategically compelling, meaningful engagement is a necessary prerequisite to advancing a transaction.
'WSP continues to take a disciplined approach to acquisitions to maximise shareholder value and remains confident in its ongoing ability to capture future opportunities and deliver on its strategic ambitions.'
