There is a certain irony in WorleyParsons buying Amec Foster...

There is a certain irony in WorleyParsons buying Amec Foster Wheeler’s UK oil and gas assets to help the target complete a global merger with Scottish based Wood Group.
The UK competition regulator insisted on the sale to clear the $US2.7 billion deal and Worley’s Andrew Wood was a willing buyer.
This also marks a resurgence in Wood’s business, which had gone from $12.9 billion booming mining and oil consultancy in 2007 to a struggling company in early last year when it was valued in the market at just $780 million.
At Friday’s close of $14.27 a share, the company was worth a more respectable $3.5bn ahead of today’s $322m rights issue at $13 a share.
Both major shareholders, the Dubai based Dar Group which controls 20 per cent and founding chair John Grill who speaks for 10 per cent, will back the deal.
Last year, before Foster Wheeler and Wood joined forces, the market was full of chatter about an impending takeover of Worley by one of the majors.
Then Dar Group emerged earlier this year unannounced on the register saying it was happy to maintain its holding at that level.
Few expect it to sit there for ever but the more Wood pushes his foot on the accelerator the more value he creates for all shareholders including the Dar Group.
Wood is especially keen on the UK acquisition because it brings with it a strong maintenance, modifications and operations focus which he is trying to build into the company.
This work tends to have a longer life span with repeat contracts which makes it better for the firm.
Wood has engineered a major overhaul at Worley, with staff numbers down some 20,000 people to 23,000 and, in all, $450m in overheads removed.
This deal, complete with 3.000 more staff, marks a rebound showing Worley is back on track and expanding which is good news for Wood.
By all reports shareholders are supportive of the latest deal which is earnings per share accretive from day one.
Dar Group may be hanging around uninvited but Wood is showing he is getting on with business.