Canadian engineer said it had been ‘unable to engage with Arcadis regarding the terms of a potential transaction’

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Arcadis was the subject of two bids by WSP over the summer, which it turned down

WSP has formally abandoned its potential takeover of Arcadis, the Canadian engineer’s chief executive said.

The Montreal-based group said a deal could only be pursued through a negotiated transaction supported by Arcadis’ board and that it saw no path to advance a deal without the company’s cooperation.

WSP said it had been “unable to engage with Arcadis regarding the terms of a potential transaction”. It added: “A combination of Arcadis and WSP can only be realised through a negotiated transaction supported by the Arcadis boards.”

Arcadis was ranked as the world’s second largest architect in the 2024 WA100 survey, employing almost 2,000 architects out of a total workforce of around 36,000.

Over the summer, WSP had two bids – that valued the Dutch-based business at around £3.8bn – turned down.

WSP Global chief executive and president 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.”

Reacting to the news this morning, Arcadis said WSP’s two proposal had been rejected because they were deemed as “fundamentally undervaluing Arcadis’ intrinsic value, strategic position and future prospects. Additionally, it would raise concerns regarding execution of strategic plans, cultural fit, and integration risks, with adverse consequences for Arcadis’ shareholders, employees, clients, and other stakeholders”.

Chief executive Heather Polinsky added: “[Chairman] Peter de Wit and I want to say, on behalf of the Executive and Supervisory Boards, that we are grateful for the valuable and inspiring feedback from shareholders, clients, and Arcadians over the last several months.

“We will build on what makes our culture distinctively Arcadis and strengthen our performance muscle. Our differentiator is bringing people and performance together with care.”

Arcadis said it will provide an update on its medium-term strategy at an event next Tuesday in Amsterdam.

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