AMEC has announced the successful completion of its offer for engineering rival Foster Wheeler to create "a new force" in engineering, project delivery, power equipment and consultancy.
Under the £5 billion deal the two companies will combine their businesses into a new organization known as Amec Foster Wheeler, with a workforce of 40 000 in over 50 countries and annual revenues of £5.5 billion.
AMEC announced the takeover in January 2014, devising the deal as a means to grow its oil services business and broaden its geographic presence. It described the takeover as "a compelling proposition" that would lead to cost synergies and give it access to Foster Wheeler’s "robust" power equipment business with a solid order backlog.
Amec Foster Wheeler will have operations in the onshore and offshore oil and gas value chain, mining, clean energy, power generation, environment and infrastructure markets. It will use its increased size to "widen and deepen customer relationships", it said in a statement.
The merged company will be led by AMEC Chief Executive Samir Brikho and will source just over half of annual revenues from oil and gas, based on 2013 pro-forma numbers. Its engineering and project delivery operations will be managed through three geographic business units, while its power equipment business, will operate across all geographies.
Sian Crampsie
