WS Atkins receives £2bn takeover offer from Canada

Global design, engineering and project management consultancy WS Atkins has received a takeover bid from Canadian engineering giant SNC-Lavalin, which values the UK-based company at more than £2 billion.

Atkins' board has said it would be prepared to recommend the offer, subject to reaching agreement on other terms and conditions, which the two companies are in talks about.

However, the group stressed that there can be no certainty that a firm offer will be made.

A statement from SNC-Lavalin said any firm offer would be subject to a number of conditions and the recommendation of the WS Atkins board.

Atkins was subject to a takeover bid from rival CH2M at the start of the year, but it came to nothing, with no offer officially made. However, analysts have suggested that a third party could enter the fray as the consultancy industry continues to consolidate.

Atkins claims to be the UK's largest engineering and design consultancy, employing more than 18,000 staff worldwide. In the UK, the company operates from a network of more than 40 offices.

Meanwhile, SNC-Lavalin is headed up by Scotsman Neil Bruce, who was previously chief operating officer and executive director of AMEC. The firm has worked on projects including the Trans-Canada Highway, the development of baggage handling systems at the airport in Montreal and, in the UK, the reconstruction of East Grinstead station.