Wood Group gets green light for £2.2bn Amec takeover

Wood Group's £2.2 billion swoop on Amec Foster Wheeler has been given the green light from Britain's competition regulator.

Wood Group's takeover of Amec Foster Wheeler is set to complete next month. Picture: Contributed

The Competition & Markets Authority (CMA) said it has accepted remedies put forward by the firms to smooth competition concerns, which include Amec offering to sell off a number of assets.

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Kate Collyer, deputy chief economic adviser and decision maker in the case, said: “We… 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's takeover of Amec Foster Wheeler is set to complete next month. Picture: Contributed

There had been competition concerns surrounding the supply of engineering and construction services, as well as operation and maintenance services in the North Sea.

Following the CMA’s decision, the deal is expected to complete next month.

Robin Watson, chief executive of Aberdeen-headquartered Wood Group, said: “Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule.

Wood Group's takeover of Amec Foster Wheeler is set to complete next month. Picture: Contributed

“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.”

When announcing the deal, Wood Group said it would result in “significant cost and revenue synergies” of at least £110 million a year. The firm employs about 29,000 people while Amec has 35,000 workers and the new entity would be valued at some £5bn.