March 15 - UK-headquartered energy services company Wood Group is set to acquire Amec Foster Wheeler - a UK-based consultancy and project management company - in an all-share takeover deal worth approximately GBP2.2 billion (USD2.7 billion).
Under the terms of the agreement, Amec Foster Wheeler shareholders will receive 0.75 new Wood Group shares for each Amec Foster Wheeler share. This will result in Amec Foster Wheeler shareholders owning approximately 44 percent of the share capital of the combined group.
Robin Watson and David Kemp, ceo and cfo of Wood Group respectively, will continue in their roles within the combined group, while four members of the Amec Foster Wheeler board will join the new board.
Ian Marchant, chairman of Wood Group, said the "transformational transaction" would extend the scale and scope of its services, broaden its end market, geographic and customer exposure as well as facilitate further development of its technology-enabled solutions.
"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."