Regulators are considering proposals by energy services firms Wood Group and Amec Foster Wheeler to address competition concerns over their planned £2.2bn (US$2.8 billion) merger. The firms have agreed to sell a range of assets to ease the path of the deal.
The move comes after the Competition and Markets Authority (CMA) found the merger could curb competition in the supply of services to the UK oil industry. It told the firms to offer a remedy or face an in-depth investigation.
The CMA said on Tuesday it considered there were “reasonable grounds” for believing that the proposal — or a modified version of it — “might be acceptable”.
The proposals would see Amec Foster Wheeler sell off “almost all” assets which contribute to engineering, construction and maintenance services in its upstream offshore oil and gas business in the UK.
Full Content: Financial Times