Dutch engineering consultancy group Arcadis said on Friday it had received a second unsolicited takeover bid from Canadian peer WSP Global, confirming a Reuters report from Thursday.
Amsterdam-listed shares of Arcadis, which closed 11.5% higher the night before following the report, jumped another 9.5% to their highest price since October.
The board unanimously rejected a first offer of €48.5 per share, saying it “fundamentally undervalued the company”, and is now reviewing a revised proposal of €51.5 apiece, Arcadis said in a statement.
Reuters reported on Thursday that Toronto-listed WSP had been working on a possible bid for Arcadis over the last year, citing two people familiar with the matter. Other potential suitors included large-cap private equity firms, the people said.
Arcadis said in the statement that the first offer had not addressed concerns around “strategic fit, cultural fit, deal certainty and other stakeholders’ interests”.
The upgraded bid would imply an equity value of €4.4 billion ($5.0 billion), or €5.2 billion including Arcadis’ debt which stood at €797 million in 2025, according to Reuters’ calculations.
In a note to investors, Jefferies said the new offer price would be in line with Arcadis’ historical valuation.
The company was worth nearly €6 billion at its peak in August 2024, but has since lost more than a third of its value.
“Blending WSP’s serial acquisition-led growth culture with the continuity mission of Arcadis’ largest shareholder would not be easy,” said Kristof Samoy, analyst at KBC Securities.
Arcadis’ top shareholder with a 19% stake is an employee foundation called Stichting Lovinklaan.
WSP confirmed it submitted an indicative, non-binding proposal to Arcadis on July 23, adding that no definitive agreement had been reached and any potential transaction remained subject to the two companies agreeing on terms.
Shares of WSP were up nearly 1%.
Lovinklaan was not immediately available for comment.
Source: Reuters.com