Proposed sale of Amec oil and gas to make way for merger

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


Share this article



Latest Businesses for Sale

Carpentry & Joinery Components (Fast Sale)
West Midlands, UK

Offers required by April 17, 2020 - 6:00pm. Opportunity has arisen predominantly as a result of a funding requirement determined by trading losses partially driven by reduced margins on contracts and increasing fixed overheads in a competitive sector...

Asking Price: Offers Invited
Turnover: £7,500,000

LEASEHOLD


Construction Recruitment (Fast Sale)
South East, UK

Interested parties should be in a position to submit initial expressions of interest no later than 5pm on 3 April 2020. South East based companies focusing on recruitment (temporary and permanent), engineering and site logistics for the construction...

Asking Price: Offers Invited
Turnover: £5m+

Access Control Systems & CCTV Consultancy
Hertfordshire, South East, UK

Offers an extensive range of specialist property development solutions. Provides a multitude of security systems, including installation and maintenance. Works with circa 140 active clients, 85% of whom provide repeat business. Offered for sale to fa...

Asking Price: Offers Invited
Turnover: £530,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
02
 
Apr
 

Next puts headquarters and three warehouses up for sale | COMMERCIAL PROPERTY

Fashion retailer Next has put its head office and three ware...

 
01
 
Apr
 

Sheffield-based cafe chain falls into administration | ADMINISTRATION

Sheffield-based cafe chain Massarella Gelaterie Ltd has been...

 
31
 
Mar
 

Coronavirus Business Interruption Loan Scheme to cover business acquisitions | BUSINESS NEWS

The UK government has launched the Coronavirus Business Inte...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
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...

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