WorleyParsons to acquire AFW UK

Engineering group Worley Parsons will launch a $322m capital raising to fund UK oil acquisition

Wood Group has completed the £2.2bn takeover of Amec Foster Wheeler, which has also agreed a deal to dispose of the majority of its UK North Sea operations for nearly £230m.

The Competition and Markets Authority (CMA) had expressed fears the takeover gave rise to antitrust issues surrounding the supply of engineering, construction and maintenance services in the North Sea.

Lewis has served as chief executive of Amec for the past year and has left following the completion of the United Kingdom oil services company's takeover by John Wood Group PLC (LON:WG), which was announced yesterday.

WorleyParsons CEO Andrew Wood said: "AFW UK is a world class integrated solutions business with best in class MMO capabilities and an excellent track record of global expansion".

Aberdeen-based Wood Group said it will result in "significant cost and revenue synergies" of at least £110m a year.

AFW has five offices in the United Kingdom and two in the Middle East.

To fund its British acquisition, the Australian company will issue new shares as part of a A$322mn capital raising (through a 1-for-10 entitlement offer and existing debt facilities).

Australian engineering firm WorleyParsons Ltd said today it would buy the former upstream oil and gas assets of Britain's Amec Foster Wheeler Plc for £182mn, marking its entry into the UK North Sea market.

Amec is now in the process of being taken over by multinational energy company, the John Wood Group, for $3.7 billion.

The company said the deal is due to be finalised by the end of October.

This business being sold consists of the majority of Amec Foster Wheeler's UK upstream oil and gas business located in the UK and serving UK customers, excluding its commissioning business qedi.

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