Dutch engineering consultancy Arcadis has formally rejected an improved €5.2 billion takeover bid from Canada's WSP Global, stating that the latest proposal still fails to reflect the company's true value.
The rejection, announced on Thursday, marks a significant setback for WSP, which has been pursuing the Amsterdam-listed firm for over a year in an effort to expand its global footprint in the infrastructure and environmental services sector.
Arcadis emphasized that the offer undervalues the business, suggesting that the gap between the bidder's valuation and the target's self-assessment remains wide.
Arcadis emphasized that the offer undervalues the business, suggesting that the gap between the bidder's valuation and the target's self-assessment remains wide.
This development follows WSP's previous attempt to raise its stake, which had already increased its offer to €51.50 per share in a non-binding proposal.
The persistent disagreement on price highlights the challenges of cross-border M&A in the engineering sector, where strategic control premiums often clash with shareholder return expectations.
The failed bid leaves Arcadis's future uncertain, as the company has previously attracted interest from multiple parties.