Wood Group’s proposed US$2.72 billion deal to takeover Amec Foster Wheeler is closer to completion following approval from the Mexican antitrust commission today (15 September).
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Watson. Image from Wood Group. |
“Following approval by the Mexican antitrust commission, Wood Group considers that all of the regulatory and third party clearance conditions set out in paragraphs 2 to 14 of Part III of the scheme document have now been satisfied,” the company said in a scheme of arrangement filing.
A court hearing to sanction the scheme is expected to be held on 5 October, with the effective date of the scheme expected to be on 6 October.
The acceptance the remedy from the Competition and Markets Authority (CMA) was revealed earlier this week on 12 September.
The remedy consists of most Amec Foster Wheeler’s UK upstream oil and gas business in the UK.
Wood Group Chief Executive Robin Watson said that the CMA decision came earlier than expected.
“Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule,” Watson said on 12 September. “[The] 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.”
“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,” Jon Lewis, Amec Foster Wheeler CEO said on Tuesday.
In March, Wood Group made its move to begin the takeover of Amec Foster Wheeler, just three years after Amec's 2014, $3.2 billion acquisition of Foster Wheeler.
Wood Group believes the merger will result in significant growth opportunities and "significant sustainable cost synergies of at least £110 million, equivalent to about $134 million a year on a recurring basis, at a one-off cost of about $231 million (£190 million) in the three years, post completion.
Three months after the proposed merger announcement, shareholders of both companies overwhelmingly approved the deal.
Once complete, the combined company will be led by Watson as chief executive and David Kemp as chief financial officer.
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