March 13 (UPI) -- Wood Group will purchase AMEC Foster Wheeler for $2.6 billion in a move that will combine two of Britain's largest energy services.
In a statement announcing the acquisition, Wood Group leaders said the takeover is a boon to the company's business strategy and its relationships with clients.
"The combination will create an asset-light, largely reimbursable business of greater scale and enhanced capability, diversified across the oil and gas, chemicals, renewables, environment and infrastructure and mining segments," Wood Group chairman Ian Marchant explained.
BBC News reports the deal will create an entity with a combined value of $6.1 billion. Shares for both companies received a boost after the deal was disclosed, with AMEC and Wood seeing a 14.7 and 4.4 increase, respectively.
"The all-share structure of the offer allows our shareholders to benefit from the significant synergies and other strategic benefits that are expected to be realized from the combination," AMEC chairman John Connolly said in a press release.
The acquisition follows a recent drop in Wood Group's revenue, which coincided with cuts in staff. Marchant suggested the deal with AMEC will help alleviate those losses.
"Delivering significant sustainable synergies will also result in a leaner and more competitive combined group, creating value for shareholders," he added.