Australian engineering firm WorleyParsons has signed a deal to acquire the energy, chemicals and resources (ECR) business divisions of US-based rival Jacobs Engineering.

The acquisition deal is estimated to be worth $3.3bn, comprising $2.6bn in cash and $700m in WorleyParsons’ ordinary shares.

Both engineering firms have a significant presence in the Middle East hydrocarbons projects market, having provided front-end engineering and design (feed) and project management consultancy services to multiple projects in the past. And they are currently executing a number of jobs and bidding for work in the region.

WorleyParsons is reported to have raised $1.3bn through an institutional entitlement offer to fund the Jacob’s ECR business acquisition.

The deal has been approved by both boards and is expected to close in the first half of 2019.

Jacobs ECR is ranked number one globally for its delivery of complex petrochemical and chemical projects, and for its maintenance, modifications and operations (MMO) for hydrocarbons projects; that includes onshore and offshore production facilities and integrated project delivery, construction and technical services, WorleyParsons said in a statement.

The acquisition would make WorleyParsons the world’s biggest provider of professional services in energy and resources, it said, with a large footprint in the Middle East and Asia.