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UK Regulator Gives Go-Ahead To John Wood’s $305M Nuclear Sale

 |  March 4, 2020

The UK competition watchdog on Wednesday, March 4, announced it has cleared the sale of oil services firm John Wood Group PLC’s nuclear business.

The sale of the nuclear business was announced in August 2019. US-based Jacobs Engineering Group Inc will be taking it on for US$305.0 million, and Jacobs had agreed to a £7.5 million (US$9.65 million) payment if the UK regulator the Competition & Markets Authority had blocked the deal.

However, the CMA stated on Wednesday it will not be referring the sale to a phase two investigation. “Wood and Jacobs continue to work towards completion of the transaction which is expected later this month,” said John Wood Group, in its own statement on Wednesday.

Proceeds from the nuclear unit disposal will be used to reduce debt and enable John Wood to take a “significant step towards achieving its target leverage policy”.

Early in February, John Wood also announced the US$118 million sale of its industrial service arm to technical services provider Kaefer.