Wood Group and Amec Foster Wheeler to merge following CMA approval
13 Sep 2017
The Competition and Markets Authority (CMA) has approved plans for Wood Group and Amec Foster Wheeler to merge.
The deal, worth a reported £2.2 billion, had been under investigation by the CMA after the regulator found competition concerns could arise in the supply of engineering and construction services and operation and maintenance services.
To address these concerns, both companies proposed selling Amec Foster Wheeler’s businesses in these areas – which the CMA has accepted.
Kate Collyer, deputy chief economic adviser and decision maker in the case, said: “It is crucial that competition is maintained in this major UK industry.
“We have therefore conducted a thorough investigation into this merger, and believe that the sale of Amec Foster Wheeler’s assets will address our concerns and ensure that customers in the North Sea continue to be able to obtain competitive bids.”
Wood Group and Amec Foster Wheeler provide engineering services to the upstream oil and gas sector in the UK Continental Shelf (UKCS).
Wood Group chief executive Robin Watson said both companies had maintained “a relentless focus” on merging the businesses since the deal was announced earlier this year.
Speaking yesterday, he said: “Today’s earlier than anticipated decision from the CMA allows us to move forward with pace and we are very confident of completing the acquisition of Amec Foster Wheeler in October.”
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