Wood Group foresees further Amec synergies

Listen to this article

00:00
00:00

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.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.