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Energy

Wood Group confident of completing Amec Foster Wheeler acquisition in October after UK CMA formally accepts remedies

In a statement, John Wood Group said the deal is now expected to be completed upon receipt of merger clearance in Mexico

John Wood Group PLC (LON:WG.) said today that it is confident of completing the acquisition of Amec Foster Wheeler PLC (LON:AMFW) in October after the UK Competition & Markets Authority formally accepted remedies offered last month, having previously provisionally accepted them.

In a statement, the FTSE 250-listed oil services group said the deal is now expected to be completed upon receipt of merger clearance in Mexico.

READ: Wood to sell Amec's UK offshore oil business to satisfy competition concerns

The remedy accepted by the CMA consists of disposal of the majority of Amec's UK upstream oil and gas business, excluding its commissioning business, qedi.

The CMA does not require the two companies to complete the sale of the remedy business in advance of their combination.

Commenting on the CMA's announcement Wood Group's chief executive Robin Watson said: "Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule.

“Today's earlier than anticipated decision from the CMA allows us to move forward with pace and we are very confident of completing the acquisition of Amec Foster Wheeler in October."

Amec's chief executive officer 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 that we will close the transaction in October, bringing the many benefits of the combined company to our clients, colleagues and shareholders."

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