Ontario Construction News staff writer
Canadaโs WSP Global Inc. has approached rival engineering services firm Aecom about a possible deal, according to people familiar with the matter, Bloomberg News reports.
โThereโs no guarantee that the overture will lead to a transaction, said the people, who asked to not be identified because the matter isnโt public,โ said the story, published on Tuesday.
Bloomberg said representatives from Los Angeles-based Aecom and Montreal-based WSP didnโt immediately respond to requests for comment.
Aecom, as a publicly traded company has a market value of about US $7.4 billion, while WSPโs market value is about $9.9 billion in Canadian funds, or $7.6 billion in US dollars.
Bloomberg said Aecom agreed in October to sell its management services division to a group of private equity firms for $2.4 billion. It has been โtargeted by activist investor Starboard Value,โ the published report said.
WSP has been expanding rapidly. Itโs Australian division purchased Elton Consulting Group Pty Ltd. (also based in Australia) in November. In December, it acquired New York-state based Ecology and Environment Inc.
Aecomโs website says its services include consulting, planning, architecture, engineering and construction management.
โWhile it has a growing backlog thanks to a steady stream of government and infrastructure contracts, profits have stagnated in recent years due to inefficiencies and construction contract losses,โ Bloomberg reported, citing a Bloomberg Intelligence report.