£2bn Canadian swoop for UK’s nuclear builder

As Mail uncovers plans to block foreign takeovers

THE future of a key British engineering firm has been thrown into doubt after a Canadian predator launched a £2.1bn takeover bid.

Epsom-based WS Atkins, which is involved in the design of Hinkley Point C nuclear power station and the construction of Crossrail and HS2, may soon fall into foreign hands – despite Prime Minister Theresa May’s pledge to safeguard firms at the heart of crucial British infrastructure.

Quebec-based SNC-Lavalin, the largest engineering and construction company in Canada, is seeking to buy the firm at 20.8p per share – a 35pc premium on Atkins’ Friday closing price.

But documents seen by the Mail reveal Atkins could be on a draft list of 13 national infrastructure areas which could be protected from foreign takeovers.

This draft letter has been sent to leading chief executives asking them which companies should be protected from foreign takeovers.

The list suggested by the Government includes firms in chemicals, civil nuclear communications, defence, emergency services, energy, finance, food, government, health, space, transport and water – which have been judged to need protection due to the potential danger to the pub- lic should they fall into the wrong hands. As well as nuclear power and building projects, Atkins is also involved in the Thames Tideway – a major sewer project – and in the building of Birmingham New Street Station.

The proposed sale has sparked concerns from industry insiders, who are worried the British engineering industry will lose key assets as it grapples with repeated takeovers.

Nico MacDonald, chief executive of The Research & Development Society, which represents areas of R&D in Britain, said the UK industry offers overseas firms something they can’t get in their own country. He said: ‘Losing British engineers to overseas takeovers undermines an area where the UK is already really strong and that is regrettable.’

WS Atkins has a history of snapping up British rivals, and bought London-listed engineer Kentz for £1.2bn in 2014.

Atkins indicated it would be prepared to recommend the offer to shareholders, ‘subject to them reaching an agreement on the other terms and conditions of the offer’.

If successful, the firm will be the latest to fall into foreign hands following the slump in sterling since Brexit, which has made UK companies more attractive to overseas buyers.

In August Japan’s Softbank took advantage of the weak pound to buy Britain’s biggest technology company ARM Holdings for £24.3bn, while Chinese giant Ctrip bought travel website Skyscanner for £1.4bn last month.

Atkins, which employs around 9,600 in the UK and Europe, said the sale is unlikely to result in job losses should it go ahead.

Shares jumped as much as 30pc following the news, before settling up 26.6pc, or 410p, to 1950p.

The company however said there could be no certainty an offer would be made.