UK engineering giant AMEC has given its provisional agreement to the terms of a proposed $3.2 billion cash and shares deal for the acquisition of US rival Foster Wheeler.

Should the deal succeed, it will combine two of the biggest players in the British oil and gas sector, resulting in the creation of a new company valued at around 5 billion pounds (approx. US$8.2 billion). The two companies have already collaborated on a project in the Middle East, obtaining…