Amec ends interest in Kentz deal

AMEC, the international engineering and infrastructure group with sizeable North West operations, says it has ended interest in takeover target Kentz Corporation.

News of a possible £680m deal for London-based Kentz  surfaced last month. Kentz was seen as attractive as it specialises in construction in the high growth oil and gas sectors.

Amec had an approach for Kentz at 565p to 580p per share rejected by the board last month and had until September 16 to make a formal bid.

Amec, which has bases in Warrrington and Knutsford, stressed that it was on the hunt for acquisitions and that if none were made it would consider a cash return to shareholders.

It said: “Amec continues to see attractive opportunities to extend its geographic footprint in the growth regions, increase the range of services offered to clients, and enhance its position in its markets. Amec will retain its disciplined approach to acquisitions, consistent with its clearly defined strategic and financial criteria.

“The pipeline of opportunities remains strong, and depending on the progress of acquisitions, additional cash returns to shareholders will be considered in the fourth quarter of 2013.”