The CMA is considering proposals to overcome
competition concerns regarding Wood Group’s purchase of Amec
Foster Wheeler.
The companies provide engineering services to the UK’s Upstream
Offshore oil and gas sector in the UK continental shelf.
The Competition and Markets Authority (CMA) conducted an
investigation into the merger and found competition concerns in
the supply of engineering and construction services and operation
and maintenance services in the UK.
In order to address the CMA’s competition
concerns the companies have offered to sell off almost all of
Amec Foster Wheeler’s assets which contribute to these services
in its Upstream Offshore oil and gas business in the UK.
The CMA considers
there are reasonable grounds for believing that these
undertakings, or a modified version of them, might be acceptable
and it will open a public consultation on the offer in due
course.
As part of its process, the CMA will
undertake a public consultation.
If the CMA does not
accept the undertakings proposed, the merger will be referred for
an in-depth investigation.
Kate Collyer, Deputy Chief Economic Adviser and decision maker in
this case, said:
It is crucial that competition is maintained in this major UK
industry. We will consider the undertakings offered by Wood
Group and Amec Foster Wheeler further, and carefully consult
interested parties, in order to make sure that they fully
address our concerns.
The CMA has until 12
October 2017 to consider whether to accept the offer with the
possibility of extending the deadline until 7 December 2017 in
special circumstances.
All information relating to the investigation is available on
the case page.
