A TAKEOVER bid for one of Scotland’s biggest engineering firms by a Dubai-based business has collapsed after months of negotiations.
The Aberdeen-based firm Wood received a fresh bid from the engineering and consultancy firm Sidara in April after multiple previous approaches were snubbed.
However, on Monday the Dubai-based business informed Wood it no longer intended to make an offer.
Sidara said it came to the decision “in light of rising geopolitical risks and financial market uncertainty”.
Wood share prices dropped 38% from Friday’s closing price of £1.97 to £1.21 Monday morning.
The adjustment wiped £450 million from the value of the company, which now has a market cap of under £900m.
Sidara’s deadline to make an offer was extended until Friday, but it notified the Scottish firm it would not go ahead after it had completed its due diligence.
“The board remains confident in Wood’s strategic direction and fundamental prospects,” the company told its investors after the deal fell through.
Wood has grown to be one of Scotland’s biggest firms from the North Sea oil boom and has established itself as a global engineering contractor which operates in dozens of countries with a workforce of around 35,000 employees.
