Wood Group buys Amec Foster for $2.7 billion to target oil upturn benefits - best electric toothbrush to buy

(Reuters)-
Wood Group, an oil service company, has agreed to buy rival Amec Foster Wheeler for £ 2.
2 billion ($2. 7 billion)
Seek quick rewardsgrowing U. S.
Shale energy industry.
Wood Group, 35-
A year-old company based in Aberdeen, Scotland, has helped the company develop in the now-declining North Sea oil basin.
The company said the deal would enable it to expand in areas that are best suited to benefit from rising commodity prices, particularly in the United States. S.
Onshore shale oil and gas sectors.
"We believe that we have a leading growth position in these areas of the oil and gas market," Wood Group chief executive Robin Watson told analysts . ".
After crude oil fell from its peak of $100 a barrel in 2014, oil companies had to adjust to lower prices, but the recent rise of more than $50 a barrel spurred production, especially in the United States. S.
Low production costs
Amec has listed major oil companies such as BP, Shell and Exxon oil as its customers, and I have been planning to announce a 0. 5 billion allotment next week and suspend the payment of dividends to reduce costs and facilitate cash flow.
The issue of rights was canceled.
Watson said the acquisition will make its oil and gas business from now of 60% and oil prices plunge front of 85% dilution to 95%.
Instead, the weight of the new business will increase, such as engineering design services for power plant projects or consulting services for mining companies.
"We are in a part of the cycle and it is a good place to have 60% of the oil and gas," Watson said . ".
Amec Foster Wheeler itself is the product of a costly merger before the oil market downturn in 2014, and has been struggling for high debt.
It canceled its long term a year ago
Amec acquired engineer Foster Wheeler for $3 billion and is now chief executive Samir Brikho ).
Amec Foster Wheeler shares are worth 5.
64 pounds, their trading at 1330 GMT was slightly lower than that.
Wood Group shares also received a positive response, up 3% to 7. 75 pounds.
Amec Foster Wheeler investors will get 0.
The company said its new stake in the timber group was 75 shares per share.
They will have a 44% stake in the consolidation group, but the Wood Group executive will hold the highest position.
Chief executive Watson and chief financial officer David Kemp will continue their current role in the new group.
At the same time, Ian Macan, chairman of Wood Group, will continue to hold this position.
Wood Group said it expects cost savings of at least £ 0. 11 billion per year, while
Cost of about 0. 19 billion.
The companies said the savings included "company and administrative efficiency", implying layoffs in overlapping places.
The combined company will employ 64,000 people.
"While it is much higher than the valuation of AMFW, we can see that WG is integrating its market --
Mark Wilson, analyst at Jefferies, said: "The leading UK North Sea business has expanded the product line in the United States and may expand the scope of asset sales . ".
The deal is the latest in a series of mergers in the oil services industry, driven by potential increases from more stable oil prices.
GE agreed to merge its oil and gas business with Baker Hughes in October to create the world's second largest
The largest provider of oilfield services.
Rival Harry Burton had earlier tried to acquire Baker Hughes to compete with the world's largest oil field service provider, Schlumberger.
JPMorgan Chase served as chief advisor to Wood Group, playing a key role in another big UK deal this year after Standard Life merged with Aberdeen and Tesco acquired Booker.
Credit Suisse, a company broker working with Wood Group, also helped the company in the deal, while Goldman Sachs and Bank of America Merrill Lynch)