MILAN, June 20 (Reuters) - The boards of Italian builders Impregilo and Salini are due to approve terms of their planned merger on Monday, two sources familiar with the matter said on Thursday.
The merger aims to create a group with 7 billion euros ($9.2 billion) in sales by 2015, focusing on large civil engineering projects such as dams, bridges and motorways with an order book including works to expand the Panama Canal and dams in Ethiopia.
The operation is expected to be conducted through an incorporation of Salini into Impregilo. Salini controls 89.7 percent of Impregilo following a successful takeover bid.
One of the sources said the board meeting was expected to take place in the afternoon and the plan was to have the deal completed by October. After the merger Impregilo will sell back to the market some of its own shares to increase the free float.
Impregilo and Salini had no comment.
In 2012, Impregilo reported sales of around 2.3 billion euros and core profits of 84 million euros, while Salini had sales of 1.8 billion euros and core profits of 190 million euros.
$1 = 0.7590 euros Reporting By Danilo Masoni; Editing by Elaine Hardcastle