The Press and Journal (Inverness, Highlands, and Islands)
Oil firm cleared for takeover
Wood Group satisfies watchdog
Wood Group just needs a thumbs up from regulators in Mexico after the UK’s Competition and Markets Authority (CMA) accepted remedy proposals for its £2.2billion takeover of Amec Foster Wheeler (AFW).
Aberdeen-based Wood Group said it expected the deal to complete next month, having previously said only that it would be in the final quarter of 2017.
The remedy consists of most of AFW’s UK upstream oil and gas business serving the domestic market, but not its Aberdeenbased qedi commissioning business.
A Wood Group spokesman declined to say exactly what was included.
The CMA began investigating the mega-merger of the two energy service companies in June.
It later warned competition concerns could arise in the supply of engineering/ construction and operation/maintenance services, but the firms offered to sell AFW’s businesses in these areas.
Yesterday, the watchdog said it was satisfied the issues it had identified would be “fully addressed”, so it was not referring the deal for an “in-depth, phase two investigation”.
Deputy chief economic adviser Kate Collyer added: “It is crucial that competition is maintained in this major UK industry.
“We have, therefore, conducted a thorough investigation into this merger and believe the sale of Amec Foster Wheeler’s assets will address our concerns.
“The CMA worked with the companies on a twintrack approach, engaging with them on shaping remedies that might mitigate competition concerns, if any were found.
“This enabled us to promptly reach a final view on the proposed remedy after competition concerns were identified, helping to reduce uncertainty about the potential impact of the merger for customers.”
Wood Group chief executive Robin Watson said: “Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule.
“Today’s earlier-thananticipated 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.”
AFW chief executive Jon Lewis added: “We have made significant progress marketing Amec Foster Wheeler’s UK upstream oil and gas business to a range of high quality bidders, which has helped to ensure that we will close the transaction in October, bringing the many benefits of the combined company to our clients, colleagues and shareholders.”
Assets being disposed of can now be sold to a purchaser approved by the CMA. It is just a few weeks since Mr Watson revealed there were “credible buyers” ready to pounce.
Wood Group and AFW together employ 64,000 people. Mr Watson is poised to become chief executive of the enlarged company, which will have its headquarters in Aberdeen.
“Conducted a thorough investigation into this merger”