Scotland business

Wood Group and Amec merger completes

Oil rig Image copyright Amec Foster Wheeler

Energy services giant Wood Group's £2.2bn takeover of Amec Foster Wheeler is now officially complete.

The merger was wrapped up after Amec agreed to sell the majority of its North Sea operations to address Competition Markets Authority (CMA) concerns.

The deal will see Amec bank £228m for selling upstream oil and gas operations to Australian firm WorleyParsons.

Wood Group boss Robin Watson described the merger as "transformational".

The Aberdeen-based company said it did not anticipate any job losses in the north east of Scotland as a result of the deal.

In 2016, Amec's North Sea business contributed revenues of £740m and a trading profit of £43m.

Mr Watson said: "This transformational acquisition creates a global leader in the delivery of project, engineering and technical services to energy and industrial markets.

"We expect to deliver significant cost synergies and incremental revenue synergies in a less cyclical business which retains a predominantly reimbursable, asset light model with a balanced risk appetite."

When first announcing the takeover in March, Wood Group said it would result in "significant cost and revenue synergies" of at least £110m a year.

Wood Group employs 29,000 people while Amec has 35,000 workers.

The deal creates a company with a combined value of about £5bn.

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