Tue, 30 May 2017 | MERGER
Wood Group has put the majority of Amec Foster Wheeler's upstream oil and gas business up for sale with the aim of getting the go ahead for the £2.2bn takeover of its smaller rival. Both companies provide services work to global oil projects.
Robin Watson, CEO of Wood Group, said the North Sea market had become "significantly smaller" in the past three years, and justified the proposed merger by saying its "remedy commitment", to sell most of the oil and gas business of Amec located in the UK and serving UK customers, should be "sufficient" to obtain clearance from the UK CMA. This is despite critics warning that Wood could face a lengthy battle to persuade regulators that a combined 60 per cent share of the North Sea market would not limit competition.
The assets Wood has proposed to sell generated revenue of £740m in 2016, out of the total £5.4bn revenue Amec posted for the year.
The proposed sale would not include its commissioning business, but could result in additional costs being incurred or in a delay to synergy benefits.
Around 4,200 people are currently employed by Amec's North Sea business, and the possibility of a sale has brought concerns over potential job losses.
Subscribe to Business Sale Report here
Supplies high-quality boxes, utilising the latest technology to produce superior products. Embraces works of all sizes and complexities, undertaking a multitude of projects. Highly skilled management team, with some employees having worked in the ind...
FREEHOLD
Provides creative and commercially focused environmental design, planning and development solutions for clients operating across a diverse range of sectors. Adds value to its clients’ projects and delivers bespoke solutions in line with their require...
LEASEHOLD
Manages commercial and industrial projects of all sizes, specialising in roads, sewers and groundworks in the social and speculative housing markets. Operates on a regional basis, predominantly working with organisations based across the West Midland...
FREEHOLD
|
27
|
|
Nov
|
AIT Worldwide Logistics acquires UK home delivery specialist | BUSINESS SALE
AIT Worldwide Logistics has acquired home delivery company P...
|
26
|
|
Nov
|
Magazine publisher Future agrees £594m GoCompare deal | BUSINESS SALE
Magazine publisher Future has agreed a £594 million ca...
|
26
|
|
Nov
|
BSR launches the UK Company Lens | BUSINESS NEWS
For the past four months, the team here at Business Sale Rep...
Sign up to receive our acquisition alert emails to get your FREE guide
|
13
|
|
Mar
|
Wood Group to acquire rival Amec Foster Wheeler for £2.2bn | MERGER
Aberdeen-based oilfield services firm Wood Group is to buy i...
|
29
|
|
Jul
|
Real estate fund closes in on Pinewood Studios purchase | BUSINESS SALE
Pinewood Group, the company behind Pinewood Studios, is on t...
|
29
|
|
Jun
|
Serco Group sells TS business to AMEC | BUSINESS SALE
The Serco Group has completed the sale of its Technical Serv...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources