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BREAKINGVIEWS-Amec probe pollutes tricky oil merger
July 12, 2017 / 9:24 AM / 5 months ago

BREAKINGVIEWS-Amec probe pollutes tricky oil merger

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)

By Andy Critchlow

LONDON, July 11 (Reuters Breakingviews) - John Wood Group shares fell more than 6 percent after the company it is taking over, Amec Foster Wheeler, said it was under investigation for possible bribery. The probe was a known risk, but the bad timing, combined with a low oil price, makes the 2.2 bln pound deal look rash.

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CONTEXT NEWS

- Amec Foster Wheeler shares fell over 6 percent on July 12 after the company said it is under investigation by the UK’s Serious Fraud Office for bribery and corruption.

- John Wood Group, which agreed to combine with Amec in March, fell over 6 percent.

- The investigation is “not expected to have an impact on the completion of the merger”, Amec said in a statement on July 11, adding that it could not estimate reliably the likely impact of the investigation on its business.

- Amec shares were trading at 419 pence per share as of 0950 BST. John Wood was trading at 580 pence per share.

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Editing by Neal Unmack and Liam Proud

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