Linklaters and Slaughter and May have taken lead roles as UK energy services giant Wood Group is to acquire its struggling rival Amec Foster Wheeler for £2.2bn amid market competition concerns.
The deal was announced in March and is expected to close in the second half of 2017. Under the terms, Scottish company Wood Group is offering £5.64 per Amec share, for 56% ownership of the combined group.
Slaughters corporate partners Simon Nicholls, Paul Dickson and Chris McGaffin led the team representing Wood Group. Nicholls also acted for the Aberdeen-based company on its 2010 acquisition of smaller rival PSN, and in 2011 on the UK aspects of the disposal of its Well Support Division to GE, and its subsequent return of cash to shareholders. Linklaters’ team advising Amec was led by global head of corporate Aedamar Comiskey and corporate partner James Inglis. The firm has advised the engineering giant for more than a decade, including acting on its 2014 $3.2bn takeover of Foster Wheeler.
However, the deal is expected to raise competition concerns as both Wood and Amec are likely to be asked by regulators to sell some overlapping assets, particularly in the North Sea.
Herbert Smith Freehills global co-head of energy Anna Howell said: ‘I expect in the North Sea there may be a break-up of assets as the merger would create an element of dominance in that area.’
However, she added: ‘The interesting element here is that this break-up will create opportunities for private equity to pick up parts from this consolidation, where they see they can add value.’
georgiana.tudor@legalease.co.uk