Investors OK £2.2bn Wood Group-Amec FW deal

Wood Group chief executive Robin Watson

Shareholders of Aberdeen-based oil and gas services company Wood Group and rival Amec Foster Wheeler have overwhelmingly approved Wood Group’s roughly £2.2 billion recommended all-share offer for Amec Foster Wheeler.

The deal, though, remains subject to clearances from competition authorities in certain countries where both companies operate.

Wood Group said it expects the transaction to be completed in the fourth quarter of 2017.

“With a market capitalisation of around £4.6 billion at current share prices, Wood Group will consolidate its position as one of the UK’s truly global businesses,” said Wood Group CEO Robin Watson.

“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.”

The combined group would be led by Watson as CEO and David Kemp as CFO.

Ian Marchant would continue as chair.

Certain members of the Amec Foster Wheeler Board would join the board of the combined group — Roy Franklin as deputy chair and senior independent director, and Ian McHoul and Linda Adamany as non-executive directors.

Watson added: “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.”