The UK’s Competition and Markets Authority (CMA) has said that British oil and gas company Amec Foster’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 Wood Group
The competition watchdog revealed that it is considering a proposal by the two companies to auction a set of assets after their merger of US$2.8bn.
Earlier in August 2017, Amec said that it was preparing its North Sea operations for sale, responding to the competition watchdog's concerns.
The CMA explained on 15 August 2017, that there are reasonable grounds for believing that these undertakings, or a modified version of them, might be acceptable.
In line with the process, CMA will open a public consultation on the offer in due course of time. If the CMA does not accept the undertakings proposed, the merger can be referred for an in-depth investigation, according to the regulatory body.
Kate Collyer, deputy chief economic adviser in CMA 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.”
In a statement to the Reuter, Wood Group said that the companies are not required to complete the sale of their assets before the completion of the merger.
According to the source, Wood Group sees no change in the expected date of completion, the deal is expected to be closed in Q4 2017.
The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
