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UK: Wood Group completes £2.2b takeover of rival

By  |  October 9, 2017

Energy services giant Wood Group’s £2.2 billion (US$2.9 billion) takeover of Amec Foster Wheeler is now officially complete.

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    The merger was wrapped up after Amec agreed to sell the majority of its North Sea operations to address Competition Markets Authority (CMA) concerns.

    The deal will see Amec bank £228 million (US$299.9 million) for selling upstream oil and gas operations to Australian firm WorleyParsons. Wood Group boss Robin Watson described the merger as “transformational”.

    The Aberdeen-based company said it did not anticipate any job losses in the north east of Scotland as a result of the deal. In 2016, Amec’s North Sea business contributed revenues of £740 million (US$973.3 million) and a trading profit of £43 million (US$56.6 million).

    Mr Watson said:, “This transformational acquisition creates a global leader in the delivery of project, engineering and technical services to energy and industrial markets.

    “We expect to deliver significant cost synergies and incremental revenue synergies in a less cyclical business which retains a predominantly reimbursable, asset light model with a balanced risk appetite.”

    Full Content: Financial Times

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