The boards of Amec Foster Wheeler (AFW) and Wood Group have reached a unanimous agreement on the terms of a recommended all-share offer by Wood Group to acquire the entire issued and to-be-issued share capital of fellow oilfield services firm AFW in a deal valued at $2.7 billion.

The move leverages combined asset lifecycle services across project delivery, engineering, modifications, construction, operations, maintenance and consulting activities. Wood Group and AFW believe the new company will be able to achieve cost synergies of at least $134 million/year on a recurring basis.

The merger will result in AFW shareholders owning 44 percent of the share capital of the combined firm, based on the existing ordinary issued share capital of Wood Group and the fully diluted share capital of AFW.

For more information, visit www. woodgroup.com or www.amecfw.com.