Amec touted as Spanish takeover target

Construction-to-nuclear services group Amec was thrust into the takeover spotlight today after being linked to a possible €1.7bn approach.

Spanish building group Acciona has been tipped as the most likely buyer for Amec, the UK company which is on a six-strong shortlist for the contract to manage the construction of the Olympic park in east London.

Amec shares rose by as much as 6% after the Guardian newspaper said an approach had been received from a continental European rival, adding that the board of the UK company may discuss the matter today.

A spokeswoman for Northwich, Cheshire-based Amec, which has a market value of €1.7bn, declined to comment on “market rumours”.

As well as construction and engineering services, Amec has moved into the nuclear clean-up market as it looks to win a slice of the maintenance and decommissioning contracts due to be put out to tender by the government.

Amec bolstered this side of its work when it acquired Cheshire-based NNC for €36.9m in June.

Amec employs about 44,000 people in more than 40 countries, generating annual turnover of around €7.3bn. It also supplies services to the oil and gas, transport, industrial and infrastructure sectors.

Created through a merger in 1997, Acciona works across a range of infrastructure projects and services, but is also a significant player in the renewable energy sector.

In the first nine months of 2005, Acciona reported turnover of €3.45bn and underlying earnings of €523m, an increase of 33.6% on a year earlier. The company has operations around the world, including offices in Newport and Dover.

Amec’s market value has risen to around €1.7bn in recent days, following a share price climb from 328.5p at the end of last month to 373p today. The stock was 2% higher at lunchtime after giving up some of the gains from earlier in the session.

A Spanish offer for Amec would mirror the takeover of UK services group Amey, which was acquired by Ferrovial – Spain’s largest construction firm – in 2003. It recently emerged that Amey had returned to profitability after being rescued from close to collapse.