Takeover target Amec to retain European nuclear business
(Reuters) — Oil services company Amec Foster Wheeler Plc, which is being bought by peer John Wood Group Plc, said on Thursday it had decided to retain its European nuclear unit and sell its North American business.
Amec had said in March it planned to sell both the businesses, along with some others, to raise gross proceeds of about 246 MM pounds from its entire disposal program by the end of the second quarter.
The decision was taken after consulting the board of Wood Group, Amec said in a statement after markets closed.
Oilfield service companies are divesting non-core assets to offset weak demand and heavy discounting on its equipment and services due to several years of low crude prices.
Wood Group said it expects the Amec deal to help it expand in areas best placed to benefit from a commodity prices upturn, most notably the US onshore shale oil and gas sector.
The deal which has won the backing of Amec's shareholders, is being scrutinized by Britain's Competition and Markets Authority.
Amec said the planned disposal of its North American nuclear business, which raked in revenues of 83 MM pounds ($108 MM) and a trading profit of 1 MM pounds in 2016, is expected to complete later this year.
Reporting by Esha Vaish in Bengaluru; Editing by Shounak Dasgupta
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