WorleyParsons completes takeover of Jacobs resources division

The Cadia site. Image: Newcrest Mining.

WorleyParsons has acquired Jacobs Engineering’s energy, chemicals and resources division in a $US3.2 billion ($4.55 billion) deal.

The acquisition will create a merged business known as Worley, which employs a 57,600-strong workforce across 51 countries.

WorleyParsons anticipates cost synergies of around $130 million to be delivered at a cost of $160 million within two years.

The company is undergoing a transition process and will mobilise four business units under the new structure – advisian; energy and chemical services; mining, minerals and metal services; and major projects and integrated solutions.

Further benefits will be achieved from optimisation and revenue synergies, according to WorleyParsons.

“This merger is about more than capacity and capability,” WorleyParsons chief executive Andrew Wood said.

“It’s about opportunity. The opportunity to become the partner of choice for our customers, the employer of choice for our people and to deliver enhanced returns for our shareholders.”

Both WorleyParsons and Jacobs boast a number of high-profile projects across Australia, including a contract win by WorleyParsons at Rio Tinto’s $3.8 billion Koodaideri iron ore project in the Pilbara, Western Australia, and Jacobs at Newcrest Mining’s $598 million Cadia expansion project in New South Wales.

The Worley brand name will be rolled out subject to the approval of members in October 2019.

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