Among WSP’s high-profile projects is the Shard, an 87-storey tower in London.Lefteris Pitarakis/The Associated Press
Engineering firm WSP Global Inc. has decided not to pursue its proposed takeover of British construction advisory business Sweett Group PLC.
Montreal-based WSP said on Thursday it has "terminated efforts to acquire Sweet" and will not sweeten its offer price of 35 pence (52 cents Canadian) per Sweett share.
WSP's offer, valued at about $40-million, had gotten the nod from Sweett's board but it was trumped by a higher, $50-million bid from Currie & Brown Holdings Ltd., a unit of Middle East engineering giant Dar Group.
WSP had been mulling the rival bid amid the fallout from Britain's blockbuster vote to leave the European Union, which roiled markets and created a climate of economic uncertainty.
WSP spokeswoman Isabelle Adjahi said the decision not to pursue Sweett was not related to the Brexit turmoil.
The company has a history of not overpaying for what it deems is the true value of the assets being sought, she said in an email message Thursday.
Also, WSP believes it's not a good idea – in terms of ensuring harmonious relations with a targeted company – to get involved in a bidding war, Ms. Adjahi added.
WSP said in a news release that no "further financial offers or overtures to meet with the Sweett board of directors are planned at this time."
WSP currently has about 5,100 employee in Britain. A Sweett takeover would have added about 600 people. WSP unveiled its bid for Sweett in May.
"With Brexit newsflow/uncertainty, keeping WSP powder dry for another acquisition is not something that investors would be averse to," National Bank Financial analyst Maxim Sytchev said in a research note Thursday.
Bertrand Marotte