WorleyParsons to acquire Brazilian engineering group CNEC

Industrial services provider WorleyParsons has agreed to acquire engineering and project management group CNEC Engenharia from Camargo Correa group of Brazil for 170 million Brazilian real ($97.56 million).

The purchase price includes 130 million Brazilian real in consideration and BRL40 million, which will be initially retained by the business as a non-core asset.

"The capability of CNEC, based in Sao Paulo, Brazil, complements the existing capabilities of WorleyParsons' resource and energy businesses and provides a springboard for the next phase of WorleyParsons' growth across South America," the company said in a statement to the Australian Securities Exchange (ASX).

"The acquisition of CNEC is key to WorleyParsons achieving growth and expanding our hydrocarbons, power, infrastructure, mining and metals capability by incorporating CNEC's globally recognised multi-discipline capabilities," said WorleyParsons' managing director for the US and Latin America, Robert Edwardes.

"CNEC will be a significant enhancement to WorleyParsons' Latin American group," he added.

CNEC services the downstream hydrocarbons, minerals and metals, hydroelectric, infrastructure (transport, water/wastewater) and environmental industries of Brazil.