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Render of a paired-column semi-submersible (Courtesy of SNC-Lavalin media centre) Deal comes as company reveals liabilities of C$140m arising from ongoing project litigation and C$90m in Covid-related charges on Canadian light rail projects. Canada’s SNC-Lavalin Group has signed a binding agreement to sell its Resources Oil & Gas business to Dubai-based Kentech Corporate Holdings as part of its strategy to abandon risky lump-sum contracting and move into higher-margin engineering services and project management. Affecting some 6,000 staff, the move reverses the company’s drive in the last seven years to become a global player in oil-and-gas engineering and construction with the acquisitions of Kentz and Valerus in 2014, and Atkins, Houston Offshore Engineering and Faithful + Gould in 2017. Kentech celebrated its acquisition, saying it would more than double its headcount from 4,000 to 10,000 , and bring a project backlog valued at US$1.1bn . It promised no disruption to ongoing projects. Signed on 8 February, the deal is subject to regulatory approvals, with closing targeted for Q2 2021. SNC-Lavalin said the transaction is expected to create a gain on sale. The Oil & Gas business will be classified as an “Asset Held for Sale” in Q4 2020 and is […]
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