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Shareholders approve Wood Group’s all-share offer for Amec Foster Wheeler

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LNG Industry,

Wood Group has announced that its recommended all-share offer for Amec Foster Wheeler has been overwhelmingly approved by the shareholders of both companies.

Wood Group claims that the agreement is still subject to clearances from competition authorities in certain countries where both parties operate. The transaction is expected to complete in 4Q17.

The Chief Executive of Wood Group, Robin Watson, said: “I am delighted that both sets of shareholders have shown support for our all-share offer for Amec Foster Wheeler. Our coming together is a tremendous opportunity for our employees, our customers and our investors. Today we take another significant step towards creating a global leader in project, engineering and technical services delivery across a broad range of industrial markets, predominantly focused on oil and gas. Amec Foster Wheeler has a strong operational capability, a leading service offering and broad sector exposure and we have complementary asset light, flexible business models. This is fundamentally a great growth story. By building on Wood Group’s existing range of services, the quality of our delivery and the passion of our people, together we will have a stronger, broader business across a wide range of sectors.”

Watson will lead the combined group as Chief Executive. David Kemp, meanwhile, will serve as Chief Financial Officer, whilst Ian Marchant will continue as Chair. Upon completion, certain members of the Amec Foster Wheeler board will join the combined group’s board. Roy Franklin will join as Deputy Chair and Senior Independent Director, whilst Linda Adamany and Ian McHoul will serve as non-executive directors.

Watson added: “We are delighted with the overwhelming support expressed today by our shareholders. With a market capitalisation of around £4.6 billion at current share prices, Wood Group will consolidate its position as one of the UK’s truly global businesses. Our combination will give global career opportunities to employees from both companies and to people in the regions where we operate, across a broad range of services. The North East of Scotland, where we are headquartered, has generated international business for several decades, so it’s a terrific boost for Scotland that one of the UK’s largest international employers will be based there when the deal closes. Work now begins on the planning to integrate the talent, expertise and experience of our two great companies.”

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