Netherlands-based engineering consultant Arcadis has rejected a second takeover proposal from Canadian engineering giant WSP Global on grounds that the $5.4 billion revised offer, submitted July 23, “undervalued Arcadis’ intrinsic value.”
In a Thursday press release, Arcadis said that its board unanimously voted to decline the unsolicited, conditional non-binding proposal upon considering the Dutch firm’s strategic position, future prospects, and determined that the offer was “not in the best interest of the company and its stakeholders” and failed to “reflect the substantial value creation potential from the execution of Arcadis’ standalone strategy.”
WSP’s first offer for $4.8 billion, submitted on July 14, was also rebuffed on similar grounds.
Additionally, Arcadis noted that 50% of the WSP’s proposal consisted of WSP stock, hovering around $167.60, and added that the “meaningful stock component represents a materially different risk profile to our shareholders compared to a standalone Arcadis investment, including significantly higher than anticipated leverage and lower than expected dividend yield.”
Included among Arcadis’ concerns was uncertainty around “deal execution and timing, execution of strategic plans, cultural fit, and integration risks.”
In a statement, CEO Heather Polinsky cited Arcadis’ strong Q2 and H1 performance, published on Thursday, as a sign that the company is building momentum and moving in the right direction. “Our H1 2026 performance demonstrates that our growth trajectory is moving in the right direction. With a record backlog and clear momentum in our key markets, we are confident that our standalone strategy is the most effective path to creating value for our shareholders and stakeholders as we deliver on our stated medium-term financial targets,” she said.
On Tuesday, Arcadis announced that it will acquire Spanish power design specialist Satel as it looks to strengthen its grid modernization, renewable energy and data center hyperscaling capabilities across Europe.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
Arcadis ranks at No. 8 on ENR’s most current Top 225 Global Design Firms list, reporting $5.5 billion in 2024 global engineering revenue, wth WSP Global ranked No. 3, reporting $10.5 billion. The latest ranking will be released in August.
WSP did not respond to a request for comment by ENR press time.
Source: www.enr.com
