Hargreaves Lansdown

Wood Group and Amec Foster W gain court approval for merger

Thu 05 October 2017 16:06 | A A A

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(ShareCast News) - The merger of John Wood Group and Amec Foster Wheeler was given final approval on Thursday as the High Court sanctioned the scheme of arrangement to enable the combination of the two oil engineers.

On Friday, Amec will become part of Wood Group, with Amec's shareholders receiving 0.75 of a Wood share for each one they own, giving them control of 44% of the enlarged group.

Wood Group will sell off Amec's engineering and construction services and operation and maintenance services businesses in order to address concerns of competition authorities, which approved the deal last month.

Wood Group chief executive Robin Watson and chief financial officer David Kemp will remain in their roles, with chairman Ian Marchant also keeping his seat.

Shares in both oilfield groups were up more than 4% on Thursday afternoon, Amec hitting 547p and Wood 730p.

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