Energy group's overcome obstacle
Watchdog accepts Wood-Amec merger remedy
Wood Group’s merger with Amec Foster Wheeler has overcome a potential banana skin after the competition authority said it would not require Amec to sell its UK upstream oil and gas business before the deal completes.
The Competition and Markets Authority said it has accepted in principle the proposed remedy and will now undertake a public consultation.
The M&A process for the remedy is already at an advanced stage and the CMA in its provisional decision “does not require the parties to complete the sale of the remedy business in advance of completing the combination”.
As a result, Wood Group and Amec Foster Wheeler now expect the merger o complete in the fourth quarter of 2017.
Robin Watson, chief executive of Wood Group said: “Today’s announcement is an important milestone and gives us further confidence in our ability to complete the transaction in quarter four this year.”
Jon Lewis, chief executive at Amec Foster Wheeler, said: “We welcome the announcement by the CMA.
“Our offer of a proposed remedy in May and the early commencement of the sale process to potential buyers of the upstream oil and gas business has ensured we have navigated this process ahead of schedule increasing the likelihood that the transaction with Wood Group will close in quarter four this year.”