Wood Group and Amec merger plans approved by CMA

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Regulators should prefer to accepted proposals by Wood Group and Amec Foster Wheeler to speech competition concerns over their planned £2.2bn merger.

The firms keep agreed to sell a range of assets after the Competition Markets Police (CMA) found the merger could curb competition in the supply of services to the UK oil work.

The companies were told they could face an in-depth search.

Following public consultation, the CMA said the plan addressed its concerns.

Amec Forward Wheeler will now sell off «almost all» assets which contribute to rigging, construction and maintenance services in its upstream offshore oil and gas business in the UK.

‘Thorough enquiry’

Kate Collyer, deputy chief economic adviser at the CMA, said: «It is critical that competition is maintained in this major UK industry.

«We have ergo conducted a thorough investigation into this merger, and believe that the sales event of Amec Foster Wheeler’s assets will address our concerns and secure that customers in the North Sea continue to be able to obtain competitive orders.»

She added: «The CMA is committed to conducting merger investigations as quickly and efficiently as practicable.

«In this case, the CMA worked with the companies on a ‘twin-track’ approach, likeable with them on shaping remedies that might mitigate rivalry concerns, if any were found, whilst still investigating whether such appertain ti arose.

«This enabled us to promptly reach a final view on the offered remedy after competition concerns were identified, helping to Medicine set uncertainty about the potential impact of the merger for customers within this exertion.»

‘Relentless focus’

Robin Watson, chief executive of Wood Congregation said: «Since we announced the deal in March, both parties be subjected to maintained a relentless focus on keeping on schedule.

«Today’s earlier than prophesied decision from the CMA allows us to move forward with pace and we are decidedly confident of completing the acquisition of Amec Foster Wheeler in October.»

Jon Lewis, chief CEO of Amec Foster Wheeler said: «We welcome today’s announcement from the CMA.

«We have planned made significant progress marketing Amec Foster Wheeler’s UK upstream oil and gas point to a range of high-quality bidders, which has helped to ensure that we devise close the transaction in October, bringing the many benefits of the combined callers to our clients, colleagues and shareholders.»

The deal will create a company with a coalesced value of about £5bn.

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