Wood in deal to sell Amec’s North American nuclear interests
Wood Group has struck a C$10 million (£6m) deal to sell merger partner Amec Foster Wheeler’s North American nuclear operations.
The agreement to dispose of the business to Kinectrics comes after Amec, which Aberdeen-based Wood recently acquired in a £2.2 bil- lion deal, put its entire nuclear business up for sale. It later decided to retain most of its European nuclear business after discussions with Wood.
The interests being sold consists of Amec’s nuclear operations in Canada and the US together with a small operation in Romania. The transaction in respect of the Canadian and US operations is expected to close in the fourth quar- ter of 2017 subject to competition clearance in Canada. The Romanian disposal is expected to close early in 2018, subject to regulatory approval in Romania.
Last month Amec sold the majority of its North Sea operations to address competition concerns over the merger with Wood.
That deal saw Amec bank £228m for selling upstream oil and gas operations to Australian firm Worleyparsons.
The North Sea disposal enabled the transaction with Wood to go ahead in a deal which chief executive Robin Watson described as “transformational”.
When first announcing the takeover in March, Wood said it would result in “significant cost and revenue synergies” of at least £110m a year.