August 15, 2017 / 6:39 AM / 2 years ago

Amec Foster's proposed asset sale may help Wood Group deal approval: regulator

(Reuters) - Amec Foster Wheeler Plc’s proposal to sell almost all of its upstream offshore oil and gas servicing assets may be adequate for regulatory approval of its merger with John Wood Group Plc, the UK’s Competition And Markets Authority (CMA) said.

British oil and gas services company Amec Foster, which is being bought by Wood Group for 2.2 billion pounds ($2.8 billion), said earlier this month it was preparing its North Sea operations for sale, in response to the competition watchdog’s concerns.

The market regulator said on Tuesday the divestiture, or a modified version of it, might be acceptable and that it would open a public consultation in due course. (bit.ly/2vE7JcA)

Wood Group said the companies are not required to complete the sale of the assets before completing the merger.

As a result, the company sees no change in the expected date of completion, and continues to expect the deal to close in the fourth quarter of this year, Wood Group said in a statement.

Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha Gayathri

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