UK engineering services firm Wood Group has agreed to buy larger compatriot Amec Foster Wheeler for £2.23bn ($2.72bn) in a move which the former says will bring “opportunities for cost and revenue synergies.” The combined firm will have a broad portfolio of Mena region projects (see table).

Revenues for 2016 were $4.93bn for Wood and £5.44bn ($7.37bn) for AmecFW, putting the combined firm at $12.31bn in 2016, below Technip ($13.76bn) and Halliburton ($15.89bn) but above Baker Hughes in the oilfield services stakes (see chart and MEES, 3 February). In a document setting out the terms of its offer, Wood Group says that the combined company “will be able to achieve significant sustainable cost synergies of at least £110mn, equivalent to approximately US$134mn…per annum on a recurring basis.” (CONTINUED - 407 WORDS)