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Monday, June 23, 2014

SNC-Lavalin bulks up energy business with $2 billion Kentz buy, (TSE: SNC.TO)

Canadian engineering and construction company SNC-Lavalin Group Inc said on Monday that it would acquire British energy services provider Kentz Corp for about 1.16 billion pounds ($1.98 billion) in cash to expand its offerings in the oil and gas sector.Montreal-based SNC said the acquisition of Kentz would allow it to carry out larger and more complex oil and gas projects. The deal would also give SNC a much greater presence in key growth regions such as the Middle East, North America and Asia Pacific.SNC-Lavalin said each Kentz shareholders would receive 935 pence per share, a premium of 33 percent to the stock's Friday close on the London Stock Exchange. Kentz shares were trading at 928 pence on Monday.Since it went public in 2008, Kentz, a FTSE 250 company, has grown rapidly into a diversified construction company with mining, oil and gas, and infrastructure projects around the world.

SNC-Lavalin Group Inc. (SNC-Lavalin) is an international engineering and construction company. Shares of SNC traded higher by 1.37% or $0.72/share to $53.12. In the past year, the shares have traded as low as $39.47 and as high as $55.44. On average, 406416 shares of SNC.TO exchange hands on a given day and today's volume is recorded at 589241.