The Worleyparsons Limited (ASX: WOR) share price is up 5.8% to $13.52 today despite the engineering business releasing no specific news to the market.
The stock has fallen from as high as $19.90 on September 12 2018 to $13.52 despite the group being close to completing a giant $3.3 billion acquisition of US engineering group Jacobs Engineering. The deal is expected to complete in February or March 2019 once anti-trust regulatory clearance is obtained in certain jurisdictions, with it recently having been gained in the US.
Worleyparson completed two big capital raisings from retail and institutional investors at $15.56 per share to help fund the deal and the group’s success is not tied to that of the deal.
More generally Worleyparsons is reliant on the strength of ongoing investment in the energy and resources sector as a contractor specialising in proving support to mining and energy businesses.
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.