Wood Group completes Amec Foster Wheeler buy

Oilfield services company Wood Group has completed the acquisition of compatriot Amec Foster Wheeler.

The closing of the acquisition follows clearances by the UK competition watchdog, the Mexican anti-trust commission in September, and a nod by the High Court of Justice in England and Wales last week.

Wood Group said on Monday that its new ordinary shares would be admitted to the premium segment of the Official List and to trading on the main market for listed securities of the London Stock Exchange with effect from October 9, 2017.

Robin Watson, CEO of Wood Group, 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.

“Our integration planning is well progressed, and we have ensured that appropriate risk management and control processes are in place from Day 1. We have a clear organizational structure, my executive leadership team and their direct reports have been announced, and we are now focussing on implementing a best of both approaches for the wider organization.”

As a result of the transaction holders of Amec Foster Wheeler ordinary shares worth 50 pence each on the register at the Scheme record time, being 6.00 p.m. on October 6, will receive 0.75 of an ordinary share of 4 2/7 pence each in the capital of Wood Group for each Amec Foster Wheeler share.

To this end, 294,510,216 New JWG Shares will be listed on the Premium Listing segment of the Official List of the UK Listing Authority.

Following the admission to trading of the New JWG Shares, the Wood Group’s issued share capital will consist of 677,685,600 ordinary shares with each share carrying the right to one vote. With no ordinary shares in treasury, the total number of voting rights in Wood Group will be equal to the number of ordinary shares.

Wood Group also said that, as of October 6, Ian McHoul, Linda Adamany, and Roy Franklin became Wood Group board members as non-executive directors.