WorleyParsons Received all regulatory clearance and approvals for the Acquisition of Jacobs ECR Division

  • Mar 21, 2019 AEDT
  • Team Kalkine
WorleyParsons Received all regulatory clearance and approvals for the Acquisition of Jacobs ECR Division

Leading global professional services company, WorleyParsons Limited (ASX: WOR) is going to complete the acquisition of Jacobs ECR division by the end of April 2019. In an update provided on 21 March 2019, the company has confirmed that it has received all regulatory clearance and approvals which are required for completion, therefore it is anticipating the completion of acquisition to happen in next month.

The company confirmed that it has now received all clearance from The Committee on Foreign Investment in the United States (CFIUS) for foreign investment in the USA. WorleyParsons has also received US HSR antitrust clearance and regulatory approval from the European Commission, the Competition Bureau in Canada and the Competition Commission in South Africa.

Last year in October, the company had entered into a binding agreement to acquire Jacobs Engineering Group Inc.’s Energy, Chemicals and Resources (ECR) division for an enterprise value of US$3.3 Bn (A$4.6 Bn) to receive run-rate cost synergies of around A$130 million which were expected to be achieved within two years.

This acquisition will help WorleyParsons in establishing itself as a leading global provider of professional project and asset services. It is expected that after completion of this acquisition, the company will employ around 57,600 people in 51 countries which will help the company in gaining global sector leadership across Hydrocarbons, Chemicals and Minerals & Metals.

Recently on 20 March 2019, the company announced that it has been awarded PMC contract from a joint venture between Abu Dhabi National Oil Company (ADNOC) and Borealis AS, Borouge, to provide PMC services to the fourth phase of the petrochemicals complex. And before that, on 15 March 2019, the company had announced that it has been awarded a framework agreement by Algeria’s national oil and gas company, Sonatrach, to provide project management services for developing Sonatrach’s oil and gas production capacity.

For the first half of FY 2019, the company reported a statutory net profit after tax (NPAT) of $82.4 million and aggregated revenue of $2,566.2 million. The aggregated revenue increased by 11.1% as compared to pcp, driven by improved market conditions and revenue from the UK Integrated Solutions business. For the half-year period, the company recorded cash flow from operations of $21.0 million which was $44.3 million less than pcp.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $14.800, up by 2.21% during the day’s trade with a market capitalisation of ~$6.67 billion as on 21 March 2019 (AEST 1:00 PM). In the past six months, the share price of the company decreased by 23.81%, however, in the last three months, the share price of the company increased by 32.12% as on 20 March 2019. It had a 52-week high price of $20.028 and touched 52 weeks low of $10.720, with an average volume of ~1,630,393.


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