Canadian giant swoops for London-listed Ricardo
London-listed engineering firm Ricardo has agreed to a £281m acquisition deal by Canadian consultancy giant WSP in the latest foreign takeover blow to the London Stock Exchange.
Ricardo has accepted the 430p per share offer, a 28 per cent increase on the firm’s closing price on June 10 of 326p. It is a 69 per cent premium on its 90-day average.
WSP said it had secured key support from shareholders for the acquisition, including letters of intent from Gresham House, Aberforth Partners and Royal London Asset Management, which cover around 48 per cent of Ricardo’s share capital.
In a separate agreement, WSP UK have purchased nearly 20 per cent of Ricardo Shares from Science Group at 430 pence per share, bolstering its position as a shareholder. The deal is expected to be completed in the fourth quarter of 2025, subject to regulatory approvals.
Mark Clare, chair of Ricardo, said: “WSP has made a compelling offer which represents a highly attractive premium to recent average trading levels and provides certain value in cash today for Ricardo shareholders.
“Importantly, the Ricardo Directors believe that the Acquisition will provide enhanced career opportunities for Ricardo’s employees within the WSP Group as well as access for our clients to a broader service offering.”
Science Group had lobbied for the ousting of Clare as Chair at the end of May after blasting the firm’s “blinkered perspective” and “extraordinary denial of reality”.
A bad week for foreign takeovers
WSP’s takeover will mark the latest delisting blow for the embattled London Stock Exchange.
This follows a frenzy of UK takeovers on Monday that resulted in three separate billion-pound mergers and acquisitions as tech giants scouted for British bargains.
The announcement came alongside London Tech Week, where the Prime Minister sought to tout the success of the sector.
The delistings in 2025 continue last year’s exodus, which saw the biggest departures from the London stock market since the global crisis.
A total of 88 firms either ditched their listing or transferred their primary listing from the main market, including Paddy Power owner Flutter and tech darling Darktrace.