Dutch dredging group Royal Boskalis Westminster has announced a merger agreement with Smit Internationale.

The deal, worth €1.1bn, means Boskalis will pay €60 per share in cash for all outstanding shares of Smit.

Boskalis chief executive Peter Berdowski said the value of the agreement excludes €250m in debt and includes a 25% stake in Smit that Boskalis already holds.

“Excluding the Boskalis stake, the remaining purchase price would come to about €825m” Berdowski said.

The deal is expected to be complete in the first half of 2010.