Wood Group has offered to sell the majority of Amec Foster Wheeler’s upstream oil and gas business located in the UK, in an effort to receive clearance for the £2.2bn ($2.8bn USD) proposed takeover of its smaller rival.
Critics had warned that Aberdeen-based Wood could face a lengthy battle to persuade regulators that a combined 60% share of the North Sea market would not limit competition earlier this year.
At the time, Wood chief executive Robin Watson had said the North Sea market had become “significantly smaller” in the past three years. Both companies provide services work to oil projects across the global market.
The UK Competition and Markets Authority confirmed it was studying the deal in March, and earlier this month launched a Phase 1 investigation into the proposed merger.
On Tuesday evening, Wood said its “remedy commitment”, to sell most of the oil and gas business of Amec located in the UK and serving UK customers, should be “sufficient” to obtain clearance from the UK CMA.
Full Content: Financial Times
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