Sweden’s Sweco and Dutch firm Grontmij have reached a conditional agreement that would see Sweco buy all issued and outstanding ordinary shares of Grontmij.
The combined company will have around 14,500 employees with an annual turnover of approximately €1.7bn.
In a joint statement they said the move will open up new markets to both companies, and create the largest engineering consultancy in Europe.
They estimate that operational improvements worth nearly €27m would be realised in the first four years after settlement.
Tomas Carlsson: "Great value"
Sweco and Grontmij have "strong fits" in energy, buildings, infrastructure, industry and environment, with complementary competences light rail, architecture and water, the company said.
Tomas Carlsson, CEO of Sweco (pictured), said: "Combining Sweco and Grontmij will create great value for all parties involved. Sweco has a solid track record of continuous operational improvements. In terms of growth, Sweco has consistently shown its ability to successfully grow through mergers. Now that our latest large acquisition, from 2013, has been very successfully integrated, we are ready to take the next step on the European market."
Michiel Jaski, CEO of Grontmij, said: "Grontmij has made significant progress since 2012 with its ‘Back on Track’ strategy. We have successfully stabilised and refocused the company, and have now reached a strategic crossroad. Looking at the future of Grontmij and the trends in our industry, we are convinced that merging with Sweco is in the best interest of all our stakeholders."
