Amec Foster Wheeler has agreed to an all-share offer from oilfield services company Wood Group worth around £2.2bn.
Amec shareholders will own around 44% of the share capital of the combined group which wa combined value of about £5bn.
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Wood Group plans on cutting £110m cost from the combined company.
Wood Group chairman Ian Marchant said: “The combination represents a transformational transaction for Wood Group, which accelerates our strategy and creates a global leader in project, engineering and technical services delivery across a range of industrial sectors. The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions and broadens our end market, geographic and customer exposure.
“The combination will create an asset-light, largely reimbursable business of greater scale and enhanced capability, diversified across the oil & gas, chemicals, renewables, environment & infrastructure and mining segments.”
