WSP Abandons £3.8bn Takeover Bid for Arcadis After Board Refusals

WSP has abandoned its attempted £3.8bn takeover of Arcadis after failing to win support from the Dutch consultant's board.

The Canadian engineering giant said it would not pursue a public offer after concluding a deal could only be delivered through a negotiated transaction backed by Arcadis. Its withdrawal ends a two-month takeover battle.

Arcadis rejected two unsolicited approaches during that period. The second, an improved €51.5-a-share cash-and-shares proposal, valued the business at around €4.4bn (£3.8bn).

WSP said it remained convinced that combining the two global consultants offered strong strategic logic. But it claimed it had been unable to engage with Arcadis over the terms of a possible deal.

Chief executive Alexandre L'Heureux said: "We approached Arcadis with a clear conviction regarding the strategic and industrial merits of a combination between our two organizations."

"While those merits remain strategically compelling, meaningful engagement is a necessary prerequisite to advancing a transaction."

Arcadis fired back following the withdrawal. The firm said both WSP proposals had been unanimously rejected because they "fundamentally undervalued" the business.

Its executive and supervisory boards also raised concerns about strategic execution, cultural fit and integration risks. Arcadis had previously stressed that members of its boards held formal discussions with WSP before the unsolicited approaches were made.

Chief executive Heather Polinsky said Arcadis would now concentrate on sharpening performance while protecting its distinctive culture.

The consultant is pushing ahead with a strategy centred on concentrating investment in sectors where it believes it has the strongest position. It also plans to simplify the business around client needs and drive a stronger performance culture.

The collapse of the deal removes, for now, the prospect of consolidation between two of the world's largest engineering consultancies. Arcadis will set out more detail on its 2027-29 strategy at its Capital Markets Day on September 29.