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Amec, which has a base in Darlington, sees bid for construction company Kentz rejected
AN international engineering company, which employs more than 400 workers in a North-East town, has launched a bid to takeover a rival construction company.
Amec, whose European engineering headquarters are based in Darlington, has made an approach to oil, gas and mining specialist, Kentz.
The company says the deal would increase its global presence in the global energy market.
However, Kentz bosses, whose construction teams have worked on major energy projects in Saudi Arabia, Kazakhstan and Botswana, and will supply parts for a rail and port development in Mozambique, have rejected the offer, saying it undervalues the company.
The firm, which employs about 14,500 workers in 30 countries, has also turned down an approach from German company M and W, revealing that offer was lower than Amec's bid.
In a report, Amec, which wants to recruit 40 workers to develop its 120-strong engineering team in Darlington, said: “The board believes this opportunity is consistent with its strategy, as it would extend the company's geographic footprint in growth regions.
“It would also increase the range of services offered to clients, and enhance our position in two of the core markets, which are oil and gas and mining.”
However, Kentz said it is not looking to sell.
It said: “The company has a strong and consistent track record of revenue and earnings growth and has strong growth prospects through its our substantial order backlog.
“The board is not considering any other offers or to seeking a sale of the company.”
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