Wood Group eyes 'significant savings' after completing Amec acquisition
John Wood Group completed its merger with Amec Foster Wheeler and began trading as an enlarged company on Monday, making assuring noises about integration and expected cost savings.
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17:00 06/10/17
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Wood Group chief executive Robin Watson called it a "transformational acquisition" and hailed the group's new scale and enhanced offer across a broader range of geographies and sectors.
"We expect to deliver significant cost synergies and incremental revenue synergies in a less cyclical business which retains a predominantly reimbursable, asset light model with a balanced risk appetite," he said.
"Our integration planning is well progressed and we have ensured that appropriate risk management and control processes are in place from Day 1. We have a clear organisational structure, my Executive Leadership team and their direct reports have been announced and we are now focussing on implementing a best of both approach for the wider organisation. ”
Amec shares were cancelled from 1800 BST on Friday as its shareholders received 0.75 of a Wood share to give them control of 44% of the enlarged group.
Wood Group began trading on Monday with 677,685,600 shares in issue and none held in treasury, giving it a market capitalisation of £4.95bn at Friday's 730p closing price.