Regulator gives the go-ahead to £2.2bn takeover of Amec
THE £2.2BN takeover of Amec Foster Wheeler by Wood Group has received the green light from the antitrust regulator.
The Competition and Markets Authority (CMA) said on Tuesday that it has accepted remedies put forward by the firms to smooth antitrust concerns, which include Amec offering to sell off a number of assets.
Kate Collyer, deputy chief economic adviser and decision maker in the case, said: “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.”
The UK watchdog had expressed fears that the deal gave rise to competition concerns surrounding the supply of engineering and construction services, as well as operation and maintenance services in the North Sea.
But the deal is now expected to complete in October. Amec boss Jon Lewis said: “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 we will close the transaction in October, bringing the many benefits of the combined company to our clients, colleagues and shareholders.”
When announcing the deal in March, Aberdeen-based Wood Group said it will result in “significant cost and revenue synergies” of at least £110m a year.
Wood Group employs 29,000 people while Amec has 35,000 workers.