Amec Reaches Agreement on $3.2B Foster Wheeler Deal

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Jan. 13 (Bloomberg) -- Bloomberg News’ Matthew Campbell reports on Amec’s $3.2 billion purchase of Foster Wheeler on Bloomberg Television’s “The Pulse.”

More.

They are buying the u.s. company, right?

It is a company with u.s. roots that is based in switzerland for regulatory and tax reasons.

Effectively, yes.

This is a comedy centered in the americas.

This is a sign that the oil and gas services space is hot right now.

There is a lot of demand for these services.

It was plenty of oil and gas in the world.

We are not running out.

That oil and gas is in many cases more difficult to get at.

It is an more inaccessible locations, has to be piped to market.

It has to be refined and distributed.

That is where these services companies come in.

Amec is trying to take advantage of that.

What does this mean for the sector as a whole?

I saw a guy who said, why would i want to own a oil company when i can buy a services company?

These are the guys with most of the resources right now.

When you look at shale, it is really dependent on some of these companies as well.

This is the hottest space right now.

More deals to come?

Probably.

As you say and a coursing proportion of the reserves are controlled by national oil companies.

Rosnexft in russia being the biggest.

They'd need expertise.

They don't necessarily have the kind of expertise at a bp or chevron would have in-house.

That creates demand.

Shale gas, shale oil requires a lot of site-specific installation.

However, foster wheeler is a bit more focused on the downstream end of the market, less the upstream, more the refining, the pipeline.

That tends to be somewhat less lucrative.

That has a few analysts asking some questions about this deal.

Amec was also looking at another offer last year.

Does it mean that it is completely stepping away?

It seems like amec was looking to get bigger.

Can't was worth about 800 million pounds.

This is a somewhat larger accusation.

It does really make that question.

Are they finished with canned?

Probably.

Kent has gotten bigger on its own by making its own deals.

It seems like a subject that is going to be off the agenda.

Matt, thank you so much.

Ok, let's move on.

This text has been automatically generated. It may not be 100% accurate.

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