Shareholders approve Wood Group, Amec FW merger

Wood's Sir Ian Wood House at Altens.
Wood's Sir Ian Wood House at Altens.

Shareholders have approved Wood Group’s all-share takeover offer for Amec Foster Wheeler (AFW).

The transaction is expected to go through in the fourth quarter of 2017, subject to regulatory clearance.

Wood Group said last month that about 1,300 global energy service jobs were under threat from the £2.2billion merger.

It has also offered to sell “the majority” of AFW’s North Sea oil and gas business in an attempt to pre-empt any competition concerns.

The companies expect the job cuts to deliver about 60% of their new cost savings target of at least £165million annually.

Wood Group chief executive Robin Watson said today: “I am delighted that both sets of shareholders have shown support for our all-share offer for Amec Foster Wheeler.

“Our coming together is a tremendous opportunity for our employees, our customers and our investors.

“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.  This is fundamentally a great growth story.

“By building on Wood Group’s existing range of services, the quality of our delivery and the passion of our people, together we will have a stronger, broader business across a wide range of sectors.”

Mr Watson will lead the group as chief executive with David Kemp as chief financial officer.

Ian Marchant will continue as chairman.

AFW board member Roy Franklin will join as deputy chair and senior independent Director, while Ian McHoul and Linda Adamany will be appointed as non-executive directors.