The final legal hurdle to the £2 billion merger between the Wood Group and hitherto rival N. Sea oilfield services provider Amec has been overcome.
Yesterday, the UK Competition Authority formally dropped its objection to the deal on the grounds that it would reduce competition in the sector.
The two companies had agreed in talks over the summer to sell-off some Amec operations and this was accepted by the competition regulator, the CMA.
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).
Robin Watson, Chief Executive, Wood Group, said: “Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule.
“Today’s earlier than anticipated decision from the CMA allows us to move forward and we are very confident of completing the acquisition of Amec Foster Wheeler in October.”
Meanwhile Edinburgh-registered Premier Oil has sold its Wytch Farm an onshore oil field in Dorset for £200 million in cash, which will be used to strengthen its balance sheet.
The buyer is Verus – a UK-focused independent exploration company which is backed by HitecVision, a Norway-based private equity investor.
For the 12 months ended 31 December 2016, Wytch Farm generated profit before taxation of approximately $23.4 million and as at 30 June 2017 had gross assets of approximately $90.2 million.
13 Sept 2017