Atkins chief signals more acquisitions as consolidation gathers pace

WS Atkins, a major contractor to Hinkley Point, Heathrow and HS2, is targeting more mergers and acquisitions to compete in a fast-moving race among rivals to grow bigger and better.

The British engineering giant, which has spent nearly $500 million (£402 million) on M&A over the last five years, was linked with a tie-up with US rival CH2M earlier this month, leading to a 7% stock price rise and analyst upgrades.

Chief executive Uwe Krueger said: “We have a strict policy not to comment on rumours or speculation.”

But he added: “In general this industry is consolidating, and clearly at any point Atkins is looking at a number of opportunities on the M&A map. You need to be an optimal size for the area you want to play in, and Atkins hasn’t reached that size yet.”

Atkins, which employs 18,000 staff, clinched its last deal in 2015, spending $320 million on a nuclear services division.

Krueger said consolidation was driven by the need for scale, both to have a bigger spread around the world and money to invest in digital technology, which is playing “a much more important role”.