CMA eyes solutions to oil and gas merger concerns

The Competition and Markets Authority (CMA) is considering proposals to overcome competition concerns regarding a £2.2 billion oil and gas services merger. The issue centres around Wood Group’s purchase of […]

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By Jonny Bairstow

The Competition and Markets Authority (CMA) is considering proposals to overcome competition concerns regarding a £2.2 billion oil and gas services merger.

The issue centres around Wood Group’s purchase of Amec Foster Wheeler – the companies provide engineering and construction (E&C) and operation and maintenance (O&M) services to the UK’s offshore oil and gas sector in the UK Continental Shelf (UKCS).

In order to address these concerns, the firms have offered to sell off the majority of Amec Foster Wheeler’s assets relating to these sectors.

The CMA believes this may offer a valid solution and has announced it will open a public consultation to gather further opinions in the near future.

If the proposed undertakings are not accepted, then the merger will be referred for an in-depth investigation.

Kate Collyer, Deputy Chief Economic Adviser, 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.”

The CMA has until the 12th of October to consider whether to accept the offer.