CMA approves Wood Group-Amec deal

The Competition and Markets Authority has approved Wood Group's £2.2bn acquisition of Amec Foster Wheeler.

The competition watchdog said the companies' offer to sell Amec's businesses in engineering and construction services and operation and maintenance services would address its competition concerns.

Deputy chief economic adviser Kate Collyer said: "It is crucial that competition is maintained in this major UK industry. We have therefore conducted a thorough investigation into this merger, and believe that the sale of Amec Foster Wheeler’s assets will address our concerns and ensure that customers in the North Sea continue to be able to obtain competitive bids."

Wood group chief executive Robin Watson 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 with pace and we are very confident of completing the acquisition of Amec Foster Wheeler in October.”

Meanwhile, Amec's chief executive, Jon Lewis, said: "We have made significant progress marketing Amec Foster Wheeler’s UK upstream oil and gas business to a range of high quality bidders, which has helped to ensure that we will close the transaction in October, bringing the many benefits of the combined company to our clients, colleagues and shareholders.”