The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses.Marketsread more
The therapy, Zolgensma, is a one-time treatment for spinal muscular atrophy — a muscle-wasting disease and leading genetic cause of infant mortality, affecting 1 in every...Biotech and Pharmaceuticalsread more
SpaceX has raised just over $1 billion in financing since the beginning of the year.Investing in Spaceread more
An analyst for Ark Invest, which has a major investment in Tesla, says recent drastic price-target cuts by others on Wall Street are missing the big picture.Investingread more
Former Foreign Minister Boris Johnson is seen as the bookmaker's favorite to succeed outgoing Prime Minister Theresa May.Europe Politicsread more
Apple bought Tueo Health, which was developing tech to help parents monitor asthma symptoms in children, using a mobile app and commercial breathing sensors.Technologyread more
United Airlines will take its 14 Boeing 737 Max jets off its schedule for another month, through Aug. 3, canceling another 1,290 flights.Airlinesread more
Trade could be a big factor for markets in the week ahead, but investors will also be attuned to fresh inflation data and the bond market, which is flashing new worries about...Market Insiderread more
Mississippi is one of several states that have moved to pass new restrictions on abortion this year.Politicsread more
U.S. firm Jacobs Engineering has agreed to sell its energy, chemicals and resources business to WorleyParsons for $3.3 billion, in a deal that will double the size of the Australian engineering services firm.
The deal continues a shake-up of the engineering services industry, following Jacobs' $3.3 billion purchase of rival CH2M Hill Cos. last year and the 2.2 billion pound ($2.9 billion) takeover of Amec Foster Wheeler by U.K. oilfield services firm John Wood Group.
It comes as WorleyParsons emerges from a three-year downturn following the oil price crash, and positions it to tap growth in the refining and petrochemical sectors, with countries like India building massive new plants.
"Hydrocarbons and minerals and metals are both coming off the bottom and are well below their peaks of 2013. We think this is an exciting time for the sector," WorleyParsons Chief Executive Andrew Wood told analysts on a conference call.
Jacobs, the largest service provider to the NASA space program, said it would now focus on higher growth, higher margin lines of business including aerospace, technology and nuclear projects as well as buildings and infrastructure.
The acquisition would make WorleyParsons the world's biggest provider of professional services in energy and resources, it said, with a large footprint in Europe and North America, complementing its exposure in the Middle East and Asia.
The transaction will also expand its exposure to the refining and petrochemicals sectors, which Wood said was appealing as the revenue streams are less volatile than oil and gas exploration and production, where WorleyParsons is already a leader.
The deal would double the company's 2018 earnings before interest, tax, depreciation and amortisation (EBITDA) on a proforma basis to A$735 million ($523 million), and boost its earnings per share by 50 percent after achieving savings of A$130 million, Wood said.
Jacobs said it would receive $2.6 billion in cash plus $700 million worth of shares giving it an 11 percent stake in the enlarged WorleyParsons.
"For Jacobs, this transaction marks an inflection point in our portfolio transformation focused on more consistent, higher-margin growth as a leader solving the world's critical challenges," Jacobs Chairman and Chief Executive Steve Demetriou said in a statement.
The deal has been approved by both boards and is expected to close in the first half of 2019.
WorleyParsons plans to fund the deal via a A$2.9 billion entitlement offer plus the share issue to Jacobs and new debt.
The issue to Jacobs will be priced at A$16.92 a share. The rest of the offer would be priced at A$15.56 a share, a 13 percent discount to WorleyParsons' close last Friday. WorleyParsons founder and chairman John Grill, the company's second-largest shareholder, will be tipping in A$100 million.
UBS, which advised WorleyParsons on the deal, is joint lead manager with Macquarie Capital on the share sale.
Perella Weinberg Partners is financial adviser to Jacobs.