Wood Group closes £2.2bn Amec Foster Wheeler acquisition

Wood Group has completed the acquisition of engineering and project management company Amec Foster Wheeler for £2.2bn. 

The acquisition was announced in March and was completed Amec Foster Wheeler agreed to sell the majority of its North Sea operations in the UK to WorleyParsons Europe for a cash consideration of nearly £228m.

The sale was conditional upon the closing of the merger between Wood Group and Amec Foster Wheeler.

Last month, Wood Group secured the UK Competition and Markets Authority approval for the acquisition.

Wood Group chief executive Robin Watson said: "This transformational acquisition creates a global leader in the delivery of project, engineering and technical services to energy and industrial markets. 

"The company stated that it did not expect to make any job cuts due to this deal."

"We become a business of significant scale and enhanced capability delivering services across a broader range of geographies and sectors, differentiated by the quality of our people, enabling technology and know-how. 

"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."

The company also stated that it did not expect to make any job cuts due to this deal, reported BBC. 

Following the deal, holders of 50 pence ordinary shares each in the capital of Amec Foster Wheeler will receive 0.75 of an ordinary share of 4 2/7 pence each in the capital of Wood Group in exchange for each Amec Foster Wheeler unit.

Last year, Amec Foster Wheeler's divested UK upstream oil and gas business generated nearly £740m revenue and a trading profit of £43m. 

Amec Foster Wheeler plans to use proceeds from its latest transaction to reduce net debt. The transaction is expected to close by the end of the month.