The UK’s Competition and Markets Authority (CMA) said Wood Group’s acquisition of Amec Foster Wheeler creates reasons for competition concerns.
According to CMA, the merger “gives rise to competition concerns in the supply of engineering and construction services and operation and maintenance services on the UK continental shelf.”
Wood Group had previously made a proposal to the CMA of a remedy as outlined in the Wood Group Prospectus and the Amec Foster Wheeler scheme document.
The proposed remedy was in respect of assets and operations of Amec Foster Wheeler that represent the majority of Amec Foster Wheeler’s UK upstream oil and gas business located in the UK and serving UK customers.
Wood Group said it has been working with the CMA to progress consideration of this remedy and it will now formally submit the remedy proposal to the CMA.
The CMA will provisionally decide whether this remedy proposal is sufficient by August 16, 2017, at the latest, with its final decision due by October 11, 2017.
Both Wood Group and Amec Foster Wheeler consider that the proposed remedy is sufficient to address the CMA’s competition concerns and to obtain clearance.
The M&A process for this remedy is already at an advanced stage, the company said in its statement.
Wood Group and Amec Foster Wheeler continue to expect the Combination to complete in the fourth quarter of 2017.