Foster Wheeler LLC -- Moody's: Potential Acquisition of Foster Wheeler by AMEC plc Is Likely To Be Credit Negative

New York, January 13, 2014 -- Foster Wheeler AG, parent company of Foster Wheeler LLC (Baa3 Stable), announced today that it has provisionally agreed with AMEC plc (Unrated) on non-binding terms concerning a possible business combination of the two companies. AMEC is a UK based engineering, and project management services company serving the oil and gas, mining, clean energy, and environment and infrastructure markets worldwide. Moody's views this potential transaction as credit negative for Foster Wheeler since the cash component of the purchase price is expected to be largely financed by debt. The added debt would be meaningful considering the low debt balances and relatively strong credit profiles of AMEC and Foster Wheeler currently. Moody's will monitor the likelihood of an actual definitive agreement being signed and comment on any potential rating actions at that time.

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