Wood Group Rejects Third Takeover Bid from Dubai-Based Sidara Valued at $1.93 Billion

Wood Group Rejects Third Takeover Bid from Sidara Valued at $1.93 Billion

U.K.-based global energy engineering consultant Wood Group has made headlines once again as it rejected a third takeover bid from Dubai-based engineer Sidara, formerly Dar Group. The latest offer, valued at $1.93 billion, was unanimously rejected by Wood Group’s board members, who stated that the bid “continued to significantly undervalue the Group and its prospects.”

This rejection comes after two previous bids from Sidara, made on May 8 and May 15, valued at $1.8 billion and $1.87 billion, respectively. Wood Group has given Sidara until June 5 to make a formal offer or end talks under U.K. takeover rules.

Sidara, which recently changed its name in 2023, has not yet commented on the latest acquisition development and could not be reached for a statement. The firm is the parent company of several well-known engineering and planning consultants, including Dar Al-Handasah Consultants, Currie & Brown, Perkins & Will, and TYLin.

This new acquisition attempt by Sidara comes one year after private equity firm Apollo Global Management withdrew its offer to buy Wood Group. Wood Group, ranked No. 13 on ENR’s latest Top 150 Global Design Firms list, reported $3.48 billion in global engineering revenue in 2022, with a significant portion of that revenue coming from the U.S.

In a January update of its 2023 results, Wood Group reported revenue of about $6 billion, showing growth across all business units. The company aims to boost profitability and deliver significant free cash flow by 2025 through a simplification program.

Despite these ambitious goals, Wood Group reported a 6% drop in revenue for the first quarter of 2024, citing a change in strategy focusing on higher-margin businesses. Sidara, on the other hand, announced in April that it was selling a stake in Worley, a move estimated to be worth about $927 million.

As the deadline for a formal offer from Sidara approaches, the future of Wood Group remains uncertain. With both companies holding significant positions in the global engineering and construction market, the outcome of this potential acquisition could have far-reaching implications for the industry.