Dutch firm’s board unanimously determines second proposal as “not in the best interest of the company and its stakeholders”
Netherlands-based engineering consultant Arcadis has rejected a second takeover proposal from Canadian engineering giant WSP Global on grounds that the $5.7-billion revised offer “undervalued Arcadis’ intrinsic value.”
Arcadis said In a July 23 announcement that its board unanimously voted to decline the unsolicited, conditional non-binding proposal—determining the offer was “not in the best interest» of the company and stakeholders and failed to “reflect the substantial value creation potential» in executing its «standalone strategy.”
WSP Global’s first offer for $4.8 billion, submitted on July 14, was rebuffed on similar grounds.
Additionally, Arcadis said 50% of the proposal consisted of WSP Global stock, hovering around $167.60 per share. The “meaningful stock component represents a materially different risk profile to our shareholders compared to a standalone Arcadis investment, including significantly higher than anticipated leverage and lower than expected dividend yield,” the Dutch firm noted.
Included among Arcadis concerns was uncertainty around “deal execution and timing, execution of strategic plans, cultural fit and integration risks.”
In a statement, CEO Heather Polinsky cited the company’s strong 2026 second-quarter and first-half performance, with results released on July 30. Firm organic net revenue for the quarter rose 2.2%, exceeding analysts’ 0.6% forecast, and was up 1.5% for the half-year. Arcadis also noted record first-half 2026 backlog of $4.6 billion, up 13.5% organically, and operating profit margin improved to 11.4%, supported by what it said were cost-out measures and ongoing rightsizing.
«Our H1 2026 performance demonstrates that our growth trajectory is moving in the right direction. With a record backlog and clear momentum in our key markets, we are confident that our standalone strategy is the most effective path to creating value for our shareholders and stakeholders as we deliver on our stated medium-term financial targets,» she said.
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In a statement, WSP said it “reiterates its invitation” to Arcadis “to discuss its latest proposal and address any remaining concerns through constructive engagement.”
Earlier, Arcadis announced that it would acquire Spanish power design specialist Satel as it looks to strengthen its grid modernization, renewable energy and data center hyperscaling capabilities across Europe, but details on deal financial and closing date were not disclosed. Satel CEO Pablo Bernat said that joining Arcadis is a “natural next step” for the company’s business and broadens its «range of expertise and global delivery capability.”
Arcadis ranks at No. 8 on ENR’s most current Top 225 Global Design Firms list, reporting $5.5 billion in 2024 global engineering revenue, wth WSP Global ranked No. 3, reporting $10.5 billion. The latest ranking will be released in August.
