KBR Acquires Affiliate Interests in MWKL from JGC
With the completion of the transaction, MWKL, which was previously an affiliate of both companies since 1992, is again a wholly-owned KBR subsidiary. The Agreement to enter into the transaction was previously revealed on December 20, 2010.
The purchase price was Â£106.6m (approximately $165m), subject to certain post-closing adjustments.
MWKL, which has operated for over 60 years in the UK, will continue its operations in Greenford, UK. The organization will complement KBR's existing Leatherhead operations, which jointly will serve as the company's London Center of Operations, creating one of the largest engineering and construction organizations in the UK.
KBR along with its subsidiaries, is an engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial sectors.
KBR offers a range of services, through six business units: government and infrastructure, upstream, services, downstream, technology and ventures.
MWKL is an engineering and construction joint venture between US-based KBR (55 percent ownership) and Japan-based JGC(45 percent) specializes in gas processing, petrochemical, and other energy plant construction.
William Utt, chairman, president and CEO of KBR, said: â€œWe are pleased today to fully integrate MWKL back into the KBR family. The organization has played a key role in defining KBR's rich legacy in the LNG and other hydrocarbons markets.
â€œThe opportunity to consolidate our ownership of MWKL fits KBR's long-term strategy to enhance the range, flexibility and efficiency of KBR's LNG and hydrocarbons offerings to our customers.â€
Will the move enhance KBR's market share?
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