Sidara makes a new bid to acquire John Wood Group

In the United Kingdom, the troubled engineering firm John Wood Group has confirmed a renewed interest from Sidara, a Dubai-based suitor, for a potential takeover. This new approach comes less than a year after Sidara walked away from a previous deal in August 2024, citing global market turmoil and geopolitical risks as primary concerns. Last August, Sidara had made four proposals, with the highest valuing Wood Group at approximately £1.56 billion. At that time, the decision to abandon the deal caused significant declines in Wood Group's share prices, affecting investors who had been facing persistent challenges including a languishing stock market presence after substantial failed acquisition attempts. Over the past year, Wood Group, which specializes in oilfield and engineering services, had seen its shares drop by 80% and currently holds a market value of just over £200 million, a stark contrast to the £1.6 billion proposed last year. The recent interest from Sidara is understood to stem from Wood Group's ongoing struggles, particularly a steep decline in share prices recently witnessed by the firm. Additional complications have arisen, including concerns about financial management and governance standards within its project operations, as detailed in a recent independent review. Further adding to the firm's turmoil, Chief Financial Officer Arvind Balan resigned last week after admitting to making an inaccurate claim regarding a professional qualification. Sidara's renewed interest in acquiring John Wood Group follows an abandoned attempt from private equity firm Apollo in 2023, which also expressed interest but eventually pulled away from a proposed deal valued at £1.68 billion after having four other approaches rejected. John Wood Group has recently attempted to pivot its focus toward sustainable engineering practices, targeting companies in need of decarbonization and energy transition assistance, yet its ongoing financial instability remains a significant hurdle for any successful acquisition in the future.