The UK’s Competition and Markets Authority has decided to push on with an inquiry into the proposed takeover of Amec Foster Wheeler by oilfield services company Wood Group, despite efforts made to smooth the deal’s path through potential regulatory hurdles.

In a statement, the CMA said it will decide whether to pursue the matter further by August 7.

Wood Group has already offered to sell “the majority” of Amec Foster Wheeler’s oil and gas business in the North Sea, in an attempt to secure competition clearance for its proposed £2.2bn takeover of its rival.

Aberdeen-based Wood Group made an all-share offer for Amec in March, just over a week before the target company had been due to launch a £500m rights issue and suspend dividend payments to tackle its £1bn of debt.

Source: www.worldoil.com