HM Government

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Press release: CMA considering oil and gas engineering services merger remedy

The companies provide engineering services to the UK’s Upstream Offshore oil and gas sector in the UK continental shelf.

The Competition and Markets Authority (CMA) conducted an investigation into the merger and found competition concerns in the supply of engineering and construction services and operation and maintenance services in the UK.

In order to address the CMA’s competition concerns the companies have offered to sell off almost all of Amec Foster Wheeler’s assets which contribute to these services in its Upstream Offshore oil and gas business in the UK.

The CMA considers there are reasonable grounds for believing that these undertakings, or a modified version of them, might be acceptable and it will open a public consultation on the offer in due course.

As part of its process, the CMA will undertake a public consultation.

If the CMA does not accept the undertakings proposed, the merger will be referred for an in-depth investigation.

Kate Collyer, Deputy Chief Economic Adviser and decision maker in this case, said:

It is crucial that competition is maintained in this major UK industry. We will consider the undertakings offered by Wood Group and Amec Foster Wheeler further, and carefully consult interested parties, in order to make sure that they fully address our concerns.

The CMA has until 12 October 2017 to consider whether to accept the offer with the possibility of extending the deadline until 7 December 2017 in special circumstances.

All information relating to the investigation is available on the case page.

Notes for editors

  1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For more information on the CMA see our homepage or follow us on Twitter @CMAgovuk, Flickr and LinkedIn. Sign up to our email alerts to receive updates on merger cases.
  2. The text of this decision will be placed on the case page in due course.
  3. Media enquiries should be directed to Rebecca Cassar (rebecca.cassar@cma.gsi.gov.uk, 020 3738 6633).
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HM Government

Press release: British beef is coming to the Philippines

Filipinos can now enjoy British beef following a new export deal estimated to be worth £34 million.

New export deal will soon see British beef on dinner plates and menus across the Philippines. The Department of International trade team at the British Embassy Manila provided significant support to Department of Environment, Food and Rural Affairs (DEFRA) to secure an export deal estimated to be worth £34 million to the UK economy.

British Ambassador-designate to the Philippines Daniel Pruce said:

I am delighted to see that British beef is coming back to the Philippines and look forward to serving this fantastic British product at the Residence and at other British Embassy events.

Beef reared in the UK will now join pork, poultry, lamb and dairy on the list of UK food and drink shipped to the Philippines.

Food Minister George Eustice said:

Securing market access for our world-class beef to the Philippines is a huge vote of confidence for a sector that already exports more than £350 million around the world, including Hong Kong and Canada. The UK beef industry is the envy of the world and this strong demand globally for our traditional breeds reared to the highest welfare standards is what drives our exports and creates opportunities for our farmers.

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HM Government

Press release: Second wall cladding system passes latest government fire safety test

The latest wall cladding combination tested as part of the government’s series of large-scale fire safety tests has passed and meets current Building Regulations guidance.

This fifth test was of a wall cladding system consisting of Aluminium Composite material (ACM) cladding with a limited combustibility filler (category 1 in screening tests) with PIR foam insulation.

The government’s Expert Panel advises that the results show that this combination of materials can be compliant when installed and maintained properly. While government has not been informed of any tall buildings over 18 metres in England using this particular combination of materials in their wall system, it could offer a possible solution for some buildings with other cladding systems which have been identified as a fire hazard through previous large-scale tests.

The purpose of the testing programme is to develop a better understanding of how different types of cladding panels behave with different types of insulation in a fire. This is so building owners and their professional advisors can make informed decisions.

The clear advice from the Expert Panel remains that building owners need to continue to take professional advice regarding remedial work that takes into account the specific circumstances of their building.

The government announced the independent review of building regulations and fire safety on 28 July 2017. This forward-looking review will examine the regulatory system around the design, construction and on-going management of buildings in relation to fire safety as well as related compliance and enforcement issues.

Results of the first 4 tests have already been published. Results of the remaining 2 large-scale tests will be published when they are available.

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HM Government