Wood Group PLC (LON:WG.) is planning to sell the UK Continental Shelf business of AMEC Foster Wheeler to get competition authority approval for the merger of the two companies.
The Competition and Markets Authority said it was concerned that the merger might affect the market for offshore oilfield services in the area.
Wood said it had planned for the possibility and had tabled a proposal to remedy the situation that involved a sale of AFW’s UK upstream oil and gas business, but not its commissioning operation.
Wood Group and AFW believe this would meet the CMA objection and have already started a formal marketing process of the business.
The CMA will provisionally decide if this is sufficient by 16 August with a final decision due by 11 October.
Robin Watson, Wood’s chief executive, said: “Both sets of shareholders overwhelmingly supported the proposed combination and we continue to believe that the proposed remedy will be sufficient to obtain clearance from the CMA.
“We remain fully committed to completing the transaction in quarter four this year.”
Last month, Amec confirmed that it was under investigation by the Serious Fraud Office over bribery, corruption and money laundering related to a company called Unaoil.