CMA Examines Wood-Amec Merger Competition Remedy
The Competition and Markets Authority CMA has accepted in principle the remedy formally offered by Wood Group on August 09, 2017.
The remedy consists of the majority of Amec Foster Wheeler’s UK upstream oil and gas business located in the UK and serving UK customers (excluding its commissioning business, qedi) as outlined in the Wood Group prospectus and the Amec Foster Wheeler scheme document, each dated May 23, 2017.
The CMA will now undertake a public consultation before issuing its final decision which is due by October 12, 2017, Wood Group explained.
The M&A process for the remedy is already at an advanced stage. Amec Foster Wheeler started a formal marketing process in May, which has attracted interest and is progressing well. The CMA in its provisional decision does not require the parties to complete the sale of the remedy business in advance of completing the combination.
As a result, Wood Group and Amec Foster Wheeler continue to expect the combination to complete in the fourth quarter of 2017.
Robin Watson, chief executive of Wood Group said: “Today’s announcement is an important milestone and gives us further confidence in our ability to complete the transaction in quarter four this year.”
Jon Lewis, chief executive officer at Amec Foster Wheeler said: “We welcome the announcement by the CMA. Our offer of a proposed remedy in May and the early commencement of the sale process to potential buyers of the upstream oil and gas business has ensured we have navigated this process ahead of schedule increasing the likelihood that the transaction with Wood Group will close in quarter four this year.”