The boards of Amec Foster Wheeler and Wood Group have reached agreement on the terms of a recommended all-share offer by Wood Group to acquire the entire issued and to be issued share capital of Amec Foster Wheeler.
Under the terms of the combination, each Amec Foster Wheeler shareholder will receive 0.75 new Wood Group shares for each Amec Foster Wheeler share.
Based on the closing price of £7.52 per Wood Group Share on 10 March 2017, the terms of the combination represent a value of approximately £5.64 per Amec Foster Wheeler share.
The current CEO (Robin Watson) and CFO (David Kemp) of Wood Group will continue as CEO and CFO of the combined group.
Ian Marchant, who will continue as Chairman of the combined group, said: "The combination represents a transformational transaction for Wood Group, which accelerates our strategy and creates a global leader in project, engineering and technical services delivery across a range of industrial sectors. The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions and broadens our end market, geographic and customer exposure.
“The combination will create an asset-light, largely reimbursable business of greater scale and enhanced capability, diversified across the oil and gas, chemicals, renewables, environment and infrastructure and mining segments.
“By leveraging Amec Foster Wheeler’s and Wood Group’s combined asset life cycle services across project delivery, engineering, modifications, construction, operations, maintenance and consulting activities, the combined group will be able to better capitalise on growth opportunities across a broad cross section of energy and industrial end markets.
“The Wood Group Board is confident that the combination will build on the individual platforms of Wood Group and Amec Foster Wheeler to the benefit and advantage of customers, employees and other stakeholders.”
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