Aberdeen-based LNG engineer Wood Group agreed to acquire its compatriot Amec Foster Wheeler in an all-share offer valued at £2.2 billion (Approx: US$2.7 billion).
Under the terms of the agreement, each Amec Foster Wheeler Shareholder will receive 0.75 Wood Group shares for each AFW share.
According to a joint statement by the two companies, the combination will result in Amec Foster Wheeler shareholders owning approximately 44 percent of the share capital of the combined group.
Speaking of the deal, Ian Marchant, the chairman of Wood Group said, it will create a “global leader in project, engineering and technical services delivery across a range of industrial sectors.”
“The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions and broadens our end market, geographic and customer exposure,” Marchant said.
The combination has been unanimously recommended by the boards of Wood Group and Amec Foster Wheeler.
The combination is subject to, inter alia, the receipt of the relevant clearances from competition authorities in Australia, Canada, Kazakhstan, Turkey, and the United Kingdom and the US.
It will also require certain foreign investment and other approvals and may be subject to national security review in Canada and in the United Kingdom.
1 GBP = 1.22147 USD