Oilfield rivals could swoop for Wood and Amec assets

Mon, 20 Mar 2017 | BUSINESS SALE

Rivals of oilfield services firms Wood Group and Amec Foster Wheeler are set to gobble up assets and contracts of both companies if they’re forced to offload them to get their planned £2.2 billion merger over the line.

The Financial Times reports that the UK’s Petrofac and Canada’s SNC-Lavalin are among the companies closely watching the situation after Wood and Amec last week announced they are to form one of the largest North Sea oil and gas operators.

Under the terms of the deal, Amec shareholders will own 44 per cent of the new business that would look to be a “leaner and more competitive combined group”.

But industry executives told the FT that Wood and Amec may be forced to sell some overlapping assets to overcome competition concerns. It’s thought that clients served by both firms could also look for alternative suppliers so they are not reliant on the merged group.

“They are the number one and two North Sea players so there will be competition issues,” one executive told the newspaper, who said his company had already had an approach from two large international oil groups looking to diversify their supply chain beyond just Wood and Amec.

“Regulators may force them to sell assets but customers will not wait for someone in Brussels to tell them who they can do business with,” the executive added. “They will make up their own minds about how much business they want with one company.”

It is unlikely that either Montreal-based SNC-Lavalin or Petrofac are looking to launch counter-bids for Amec. Instead, SNC is said to be interested in Amec’s nuclear business and Petrofac was described by analyst Ashley Kelty as lacking the “firepower” to deploy a full alternative bid.

Find services businesses for sale.


Share this article



Latest Businesses for Sale

Provider of Coffee Machines & Related Products
South East, UK

Provides an extensive range of coffee machinery, which is imported from Italy and Spain, and coffee products, which are sourced within the UK. Offers invited.

Asking Price: Offers Invited
Turnover: £1,000,060

FREEHOLD


International Export Services
North West, UK

One of the UK's leading end-to-end service providers. Comprehensive export handling, packing and storage services, providing specialist cargo and goods management to a wide variety of international operations and private clients. 40+ years of success...

Asking Price: Offers Invited
Turnover: £1,300,000

South Down Fish Bar
Bath, South West, UK

Food Service Businesses: Fish & Chip Shops. Established, high turnover traditional Fish and Chip and hot food takeaway operating from busy parade location, Bath. Offers invited.

Asking Price: £190,000
Turnover: £338,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
24
 
Jan
 

Yorkshire engineering firm completes MBO deal | MBO/MBI

A West Yorkshire engineering group has been taken over by th...

 
22
 
Jan
 

Jewellery retailer enters administration | ADMINISTRATION

A Nottingham-based jewellery and watches company has fallen ...

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
24
 
Jan
 

Yorkshire engineering firm completes MBO deal | MBO/MBI

A West Yorkshire engineering group has been taken over by th...

 
22
 
Jan
 

Jewellery retailer enters administration | ADMINISTRATION

A Nottingham-based jewellery and watches company has fallen ...

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources