Oil services company Wood Group and rival Amec Foster Wheeler were closer to completing their proposed merger after the UK´s competition authority gave a provisional thumbs-up to the deal.
The Competition and Markets Authority (CMA) said there were “reasonable grounds” to believe that undertakings by the firms would be enough to waive through the £2.2bn merger.
It means the duo are on course to complete the merger before the end of the year, with a full competition probe set to be averted.
Earlier this month, the CMA claimed the proposed takeover of Amec Foster Wheeler by Wood Group raised issues and warned the deal could potentially be subjected to a lengthy investigation.
The regulator gave the companies until the 9 August to come up with solutions to allay the competition worries surrounding “the supply of engineering and construction services and operation and maintenance services in the UK continental shelf.”
The merger will reduce the number of competing firms in this particular market from four to three.
Both companies are active in the UK´s North Sea and have come under pressure along with the industry as a whole from lower oil prices.