Wood Group shareholders have decisively approved a takeover by Dubai-based engineering consortium Sidara, bringing a tumultuous chapter to a close for the Aberdeen engineering firm that once dominated the North Sea oil and gas sector.
At a combined meeting held in Aberdeen on 17 November, shareholders voted 89 per cent in favour of Sidara’s 30 pence-per-share offer, valuing the business at approximately £207 million. The outcome marks a dramatic collapse from Wood’s 2018 peak valuation of £5.3 billion, representing a decline of roughly 95 per cent over seven years.
The deal remains subject to regulatory approvals and court sanction, with completion anticipated in the first half of 2026. Upon shareholder approval, Wood will immediately receive $250 million in interim funding from Sidara, with a further $200 million capital injection available at completion. The transaction also includes Sidara assuming Wood’s outstanding debt of approximately $1.6 billion.
A Troubled Descent
Wood’s difficulties stem largely from its ambitious 2017 acquisition of Amec Foster Wheeler for £2.2 billion. The deal, which created a combined entity valued at around £5 billion with more than 60,000 employees globally, aimed to position Wood as a global engineering leader capable of competing with larger US rivals.
However, the acquisition proved ill-timed and overly ambitious. Amec Foster Wheeler itself was struggling with high debt levels following its 2014 purchase of Foster Wheeler, which brought significant legacy liabilities including bribery and corruption issues that Wood later resolved through settlements totalling $177 million with UK, US and Brazilian authorities.
The combined group faced persistent financial pressure characterised by high debts, cash burn and accounting failures. In its 2024 annual accounts, Wood reported a pre-tax loss from continuing operations of $2.7 billion, driven primarily by a $2.2 billion goodwill and intangible asset impairment charge. The company has not generated sustainable free cash flow since 2017.
Governance Failures and Regulatory Scrutiny
Wood’s troubles deepened significantly in 2025 when an independent review by Deloitte uncovered “material weaknesses and failures” in the company’s financial culture within its Projects division. The review found inappropriate management pressure to maintain previously reported positions, excessive optimism regarding accounting judgements, and instances of information being withheld from auditors.
These revelations prompted the Financial Conduct Authority to launch a formal investigation in June 2025, examining the period from January 2023 to November 2024. The investigation led to the suspension of Wood’s shares on the London Stock Exchange from 1 May, with trading only resuming in early November after the company finally published its long-delayed 2024 accounts.
The governance crisis also claimed casualties at board level. Chief Financial Officer Arvind Balan resigned in February 2025 over an “incorrect description of his professional qualifications”. Chairman Roy Franklin, who has led the board since September 2019, indicated he would step down once Wood’s future direction was determined. Chief Executive Ken Gilmartin stepped down following the shareholder vote, replaced by interim CFO Iain Torrens.
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Sidara first approached Wood in May 2024 with an offer of 205 pence per share. The Dubai-based consortium then walked away in August 2024, citing “geopolitical risks and financial market uncertainty”. The withdrawal triggered a sharp fall in Wood’s share price, which continued to deteriorate amid mounting concerns over the company’s financial position and governance issues.
Sidara returned in February 2025 with a substantially reduced approach, eventually settling on the 30 pence offer accepted by shareholders. The dramatic reduction in price reflected Wood’s worsening financial position and the emergence of the FCA investigation.
In recommending the deal to shareholders in August, Wood’s directors warned that alternative refinancing options would “likely generate materially less, and potentially zero, value for shareholders”. The board characterised Sidara’s proposal as representing “the better option for Wood’s shareholders, creditors and other stakeholders”.
