黑洞社区

Japanese consultant Nippon Koei has entered into a bidding war with Dutch engineering giant Arcadis to buy UK engineer Hyder.

Last week, Arcadis announced it planned to buy Hyder for 拢256m, but today it emerged that Nippon Koei has put in a rival bid to buy the firm for 拢268m.

The board of Hyder had recommended that shareholders accept the Arcadis offer, but today they recommended they take the Nippon Koei offer instead.

Nippon Koei have offered to pay 拢6.80 for each and every share in the UK engineer, 30p more than Arcadis had offered to pay.

In response, Arcadis said it 鈥渘oted鈥� the higher offer and was 鈥渃onsidering its position鈥� and would 鈥渕ake an announcement in due course鈥�.

The Japanese firm said it had a 鈥渟trategic vision鈥� to become a 鈥渢op tier engineering consultancy鈥�.

Noriaki Hirose, president of Nippon Koei, said the firm 鈥渞arely鈥� made acquisitions but that the merger would be 鈥渢ruly transformational step鈥� and would 鈥� broaden the client base and geographic footprint of Nippon Koei, whilst continuing to focus on our core sectors of transportation, utilities and property鈥�.

He said: 鈥淏oth Nippon Koei and Hyder operate in the same part of the design and engineering consulting value chain. In short, our chairman Yoshihiko Tsonoda and I could not envisage a better business for us to merge with.鈥�

Hirose said that he had been 鈥渕ost impressed鈥� with the 鈥渄epth of Hyder鈥檚 engineering capability and the skills of its people鈥�, but that he 鈥渞egretted that the confidential nature of our interest has meant that we have not yet had the opportunity to meet many of the employees of Hyder and begin planning our combined journey together鈥�.

He pledged to make minimal changes to the existing operating structures of either organisation鈥� and was 鈥渆xcited about the prospect of capturing cross selling and other revenue generating opportunities as a combined business鈥�.

Ivor Catto, chief executive of Hyder, said the offer was a 30p per share premium on the Arcadis offer and 鈥渁ccordingly the Hyder Board is now recommending the cash offer from Nippon Koei鈥�.

He said: 鈥淭he Hyder Board considers that Nippon Koei鈥檚 cash offer substantially recognises Hyder鈥檚 growth prospects, and provides certainty, in cash, to our shareholders today. The merged group should also provide further opportunities for our highly valued employees and clients.鈥�

Joe Brent, analyst at Liberum, said that he wasn鈥檛 sure this bid was 鈥渁 knock-out鈥�.

He said: 鈥淭here is the possibility that Arcadis returns, or that a new bidder emerges.鈥�
He also said the rival bid would be positive for Balfour Beatty鈥檚 sale of Parsons Brinckerhoff because it 鈥渇urther demonstrated the consolidation in the consulting industry and may add Arcadis back to the list of potential bidders for Parsons Brinckerhoff鈥�.