Wood Group offers to sell majority of Amec Foster Wheeler’s North Sea unit to gain CMA approval for £2.2bn takeover

 
Shruti Tripathi Chopra
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John Wood Group hopes to receive approval for its £2.2bn proposed takeover of Amec Foster Wheeler

UK oilfield services company Wood Group offered to sell a majority of Amec Foster Wheeler’s North Sea oil and gas business today.

The Aberdeen-based company hopes the new offer would help it receive clearance from the UK Competition and Markets Authority (CMA) for the £2.2bn proposed takeover of its smaller rival.

The CMA launched its investigation into the deal earlier this month.

John Wood Group announced in March that it had agreed a takeover deal for FTSE 250-listed Amec Foster Wheeler.

Read more: UK oil services companies in £5bn merger deal

Wood Group said its directors believe the merger can “achieve significant sustainable cost synergies of at least £110m” per year.

“The combination will create an asset-light, largely reimbursable business of greater scale and enhanced capability, diversified across the oil and gas, chemicals, renewables, environment and infrastructure and mining segments,” Wood Group chairman Ian Marchant said.

The Wood Group Board is confident that the combination will build on the individual platforms of Wood Group and Amec Foster Wheeler to the benefit and advantage of customers, employees and other stakeholders.

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