The two have entered into a scheme of arrangement to merge the businesses, with SKM’s board believing the merger to be in the best interests of its shareholders, subject to the completion of an independent expert’s report.

SKM is owned by its employees.

SKM CEO and managing director Santo Rizzuto said the merger was an exciting opportunity.

“It uniquely positions us amongst our global peers and opens the way for us to achieve even greater things in the future,” he said.

“It adds scale, diversification and growth opportunities to our business.

"We believe that this will significantly strengthen our market position and that this is an outstanding proposition for our clients and our people."

SKM said the merger fit with its long-term growth vision and followed a review of its strategic options.

The merger came after a thorough process, which included detailed interactions between the two companies to ensure a strong alignment.

Jacobs president and CEO Craig Martin said SKM’s culture, values, and operating philosophy were very compatible with Jacobs’

"Our capabilities and geographies have little overlap, enabling us together to continue to expand our client relationships and provide significant opportunities for our employees,” he said.

The deal will be subject to court and regulatory approvals.