A Scottish engineering powerhouse is on the brink of being taken over! With a £204 million bid on the table, will Wood surrender its independence by today’s deadline? This isn’t just about numbers; it’s about jobs, the North Sea’s future, and a legacy hanging in the balance. What do you think the future holds for this industry giant?
The fate of Wood, a cornerstone of Scottish engineering, hangs in the balance as a critical deadline approaches for a potential £204 million takeover by a Middle Eastern firm. This looming acquisition signals a significant shift for a company deeply embedded in the nation’s industrial landscape, potentially ending its long-held independence.
Dubai-based Sidara has until 5 PM today to formalize its 30 pence per share offer, which has already garnered the conditional support of Wood’s directors. This proposal would value the Aberdeen-headquartered oil services and engineering giant at approximately £204 million, marking a pivotal moment in its corporate history.
The current bid represents a notable reduction from Sidara’s earlier mooted offer of 35 pence per share in April. This adjustment came after the completion of due diligence, suggesting a re-evaluation of Wood’s financial position and prospects by the potential acquirer.
Wood has a rich legacy, having built its reputation by providing crucial operational support to oil and gas firms, initially in the North Sea. Over the decades, it expanded its global reach and diversified its services to include support for the burgeoning renewable energy sector, adapting to evolving market demands.
This isn’t the first time Wood has been the subject of takeover interest. In 2023, US investment giant Apollo made a substantial £1.7 billion approach before ultimately withdrawing. Sidara itself had previously explored a £1.5 billion bid last year, which was abandoned due to concerns over rising geopolitical risks and financial market volatility.
A takeover at the currently proposed, much-reduced price has sparked considerable anxiety regarding its potential impact on employment. Wood employs 4,500 individuals in Aberdeen and its North Sea operations, raising significant concerns about job security and the broader economic implications for the region and Scotland.
In addition to these external pressures, Wood has recently navigated internal challenges. An independent review highlighted serious concerns within its key projects division, responsible for developing new client facilities. The company has since committed to and is implementing a detailed remediation plan to address these issues and enhance overall organizational resilience.
Negotiations between Wood and Sidara have been ongoing since February, when initial approaches regarding a possible offer were made. While Wood confirmed on Monday that Sidara is committed to making a formal offer once remaining pre-conditions are met, the company has stressed that there remains no absolute certainty that the takeover will proceed.
