UK-based provider of consulting, engineering and project management services Amec Plc said it will be buying Foster Wheeler AG in a $3.2 billion deal, Bloomberg reported. The acquisition of the US-traded manufacturer of fired heaters and steam generating units will allow Amec to grow abroad, the report said.

Under the terms of the provisional deal, Foster Wheeler investors will have 0.9 of every new Amec share plus $16 in cash. This will be equal to $32 for each share held by the investors, according to Amec. After the deal is closed, the London-based engineer will target a US listing, the report said.

Amec is valued at £3.2 billion or $5.3 billion. The company added that the takeover will pave the way for a doubling of revenue in what it calls the "growth regions." The acquisition will also increase earnings in the first year by at least 10% and in the second year, the returns will be more than the capital cost, the report said.

In a conference call, Amec Chief Executive Officer Samir Brikho said, "The most important thing this deal is about, if you look at gas prices and monetization, is growing markets in the U.S. and the Middle East. This deal enhances our positions in both those regions."

Headquartered in Switzerland, Foster Wheeler posted a $3.1 billion market value based on last week's closing price, the report said. Bloomberg data showed that Amec's offer was made at a 0.6% premium in the company's average price for 20 days. This compared with the 32% premium made for deals in oil and gas services worldwide in 2013, the report said.

The offer is set to be completed in the second half of this year after meeting certain conditions. Existing funds and new debt will be used to fund the cash portion of the agreement. Foster Wheeler would have two board seats on Amec although it is still free to look at other potential offers, the report said.