Wood Group – Amec Foster Wheeler Deal Receives Shareholders Nod
- Business & Finance
Wood Group and Amec Foster Wheeler shareholders have approved Wood Group’s recommended all-share offer for Amec Foster Wheeler.
The deal remains subject to relevant clearances from competition authorities in certain countries where both companies operate.
It is expected that the transaction will complete in the fourth quarter of 2017.
Robin Watson, chief executive, Wood Group, said: “I am delighted that both sets of shareholders have shown support for our all-share offer for Amec Foster Wheeler. Our coming together is a tremendous opportunity for our employees, our customers and our investors. Today we take another significant step towards creating a global leader in project, engineering and technical services delivery across a broad range of industrial markets, predominantly focused on oil & gas. Amec Foster Wheeler has a strong operational capability, a leading service offering and broad sector exposure and we have complementary asset light, flexible business models. This is fundamentally a great growth story. By building on Wood Group’s existing range of services, the quality of our delivery and the passion of our people, together we will have a stronger, broader business across a wide range of sectors.”
The combined Group will be led by Robin Watson as chief executive and David Kemp as chief financial officer. Ian Marchant will continue as chair. On completion, certain members of the Amec Foster Wheeler board will join the board of the combined Group: Roy Franklin will join as deputy chair and senior independent director, and Ian McHoul and Linda Adamany will be appointed as non-executive directors.
“We are delighted with the overwhelming support expressed today by our shareholders. With a market capitalisation of around GBP 4.6bn at current share prices, Wood Group will consolidate its position as one of the UK’s truly global businesses. Our combination will give global career opportunities to employees from both companies and to people in the regions where we operate, across a broad range of services. The North East of Scotland, where we are headquartered, has generated international business for several decades, so it’s a terrific boost for Scotland that one of the UK’s largest international employers will be based there when the deal closes. Work now begins on the planning to integrate the talent, expertise and experience of our two great companies.”