MILAN, June 24 (Reuters) - The boards of Italian builders Impregilo and Salini said on Monday they had approved the terms of a merger that will create a group with revenues of 7.4 billion euros ($9.7 billion) in 2016.
In a statement the two companies said that under the merger deal Salini would be incorporated into Impregilo at an exchange ratio of 6.45 ordinary Impregilo shares for every Salini share.
Salini, which currently controls 88.83 percent of Impregilo, will hold 89.95 percent of its peer after the merger.
The new company, which will be called Salini Impregilo SpA, will generate core earnings of 1 billion euros in 2016 with an order backlog estimated at 26 billion euros, the companies said.
In 2012, Impregilo reported sales of about 2.3 billion euros while Salini had sales of 1.8 billion euros.
A shareholders meeting to approve the merger will be held in September, the companies said, adding the merger would be completed by the end of the year and be effective as of Jan. 1, 2014. ($1 = 0.7637 euros) (Reporting by Stephen Jewkes; Editing by Gary Hill)