Wood Group foresees further Amec synergies

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Wood Group is squeezing a bit more value from its forthcoming takeover of struggling rival Amec Foster Wheeler, saying it expects greater synergies than first announced last month.

In March the group agreed a £2.2bn all-share takeover offer of Amec, which provides services to infrastructure and renewable energy projects as well as the oil industry.

Wood Group had promised synergies of “at least” £110m a year — at a one-off cost of £190m — but it said on Wednesday these savings would be a least £150m. They will be made by measures such as closing offices and cutting roles where there is duplication.

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