CMA considering oil and gas engineering services merger remedy
The CMA is considering proposals to overcome competition concerns regarding Wood Group’s purchase of Amec Foster Wheeler.
The companies provide engineering services to the UK’s Upstream Offshore oil and gas sector in the UK continental shelf.
The Competition and Markets Authority (CMA) conducted an investigation into the merger and found competition concerns in the supply of engineering and construction services and operation and maintenance services in the UK.
In order to address the CMA’s competition concerns the companies have offered to sell off almost all of Amec Foster Wheeler’s assets which contribute to these services in its Upstream Offshore oil and gas business in the UK.
The CMA considers there are reasonable grounds for believing that these undertakings, or a modified version of them, might be acceptable and it will open a public consultation on the offer in due course.
As part of its process, the CMA will undertake a public consultation.
If the CMA does not accept the undertakings proposed, the merger will be referred for an in-depth investigation.
Kate Collyer, Deputy Chief Economic Adviser and decision maker in this case, 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 12 October 2017 to consider whether to accept the offer with the possibility of extending the deadline until 7 December 2017 in special circumstances.
All information relating to the investigation is available on the case page.
Notes for editors
- The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For more information on the CMA see our homepage or follow us on Twitter @CMAgovuk, Flickr and LinkedIn. Sign up to our email alerts to receive updates on merger cases.
- The text of this decision will be placed on the case page in due course.
- Media enquiries should be directed to Rebecca Cassar (rebecca.cassar@cma.gsi.gov.uk, 020 3738 6633).