Wood Group's proposed US$2.7 billion takeover of Amec Foster Wheeler has been overwhelmingly approved by shareholders at both companies, paving the way for the merger to be complete by this year.
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Image from Amec Foster Wheeler. |
Although the deal remains subject to relevant clearances from competition authorities in certain countries where both companies operate, it is expected to close in Q4 2017.
“I am delighted that both sets of shareholders have shown support for our all-share offer for Amec Foster Wheeler,” says Robin Watson, Wood Group chief executive. “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 and 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.”
Once complete, the combined company will be led by 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 capitalization of around GBP 4.6 billion ($5.8 billion) at current share prices, Wood Group will consolidate its position as one of the UK’s truly global businesses,” says Watson.
Watson expects the merger to provide global career opportunities to employees from both companies and to people in the regions where the companies 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,” says Watson.
Wood Group made its move to takeover Amec Foster Wheeler in March, just three years following Amec’s $3.2 billion takeover of Foster Wheeler in 2014.
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