Energy services giant John Wood Group has been dealt a fresh setback after its Dubai-based suitor reduced its takeover offer, citing market conditions and prolonged negotiations. The revised bid deepens uncertainty around the future of the Aberdeen-headquartered company, which has already faced months of speculation over its ownership.
Dubai investment firm Sidara, which had previously tabled a higher all-cash proposal, confirmed on Tuesday that it has scaled back the value of its offer. While the exact figures were not disclosed, industry analysts said the cut reflects shifting valuations in the oilfield services sector and the impact of tighter global financing conditions.
“Given current market headwinds and the extended timeline of discussions, we believe the revised terms represent a fair and realistic valuation,” a Sidara spokesperson said.
Wood Group acknowledged receipt of the adjusted bid but stopped short of recommending it to shareholders. In a statement, the company said it would “carefully evaluate the proposal in the best interests of investors and employees” while continuing to focus on its long-term strategy of debt reduction and portfolio simplification.
The development follows months of back-and-forth between the two parties. Sidara first expressed interest in acquiring Wood earlier this year, sparking a surge in the company’s share price. However, delays in due diligence, combined with a volatile energy market, appear to have tempered enthusiasm.
Market reaction to the latest move was cautious, with Wood Group shares dipping slightly in early trading. Analysts suggested that investor patience may be wearing thin. “There’s a sense of fatigue around this saga,” said Stuart Lamont, investment manager at RBC Brewin Dolphin. “Unless Sidara can put forward a compelling final offer, shareholders may prefer the certainty of Wood remaining independent.”
The bid uncertainty comes at a challenging time for Wood Group, which has been restructuring to streamline operations and strengthen its balance sheet after years of fluctuating oil prices and pandemic-related disruptions. The company employs more than 35,000 people globally and is a key player in engineering, consulting, and energy transition services.
Union leaders expressed concern about the prolonged negotiations, warning that employee morale could suffer. “Our members want clarity on their future, not endless speculation about ownership changes,” said a representative from Unite Scotland.
With no final decision yet on the table, industry observers say Sidara’s revised bid may either draw a line under the takeover saga or trigger rival interest from other investors. For now, Wood Group’s fate remains uncertain, caught between shareholder expectations and shifting market realities.
