In the high-octane world of engineering and consulting, the drama between UK-based Wood and Sidara, the global architecture and engineering powerhouse, is heating up once again. After a whirlwind of offers, rejections, and geopolitical jitters, Sidara has rekindled its interest in acquiring Wood. But will this corporate courtship finally lead to a deal, or is it destined to fizzle out once more?
The Takeover Talks: A Rocky Road
The saga began in April 2024 when Sidara, formally known as Dar Al-Handasah Consultants Shair and Partners Holdings, made its first move with an offer of 205 pence per Wood share. Wood’s board swiftly rejected the bid, deeming it too low for the company’s true value. Sidara, undeterred, upped the ante three times, eventually reaching 230 pence per share by late May.
Wood’s board finally gave the nod, allowing Sidara access to due diligence materials. But just as the deal seemed imminent, Sidara pulled the plug in August 2024, citing rising geopolitical risks and financial market uncertainty. Now, the tables have turned again, with Sidara making a preliminary approach for Wood’s entire share capital.
What’s at Stake?
Wood, a stalwart in the engineering and consulting sector, has been a key player in major projects worldwide. Its recent contract extension with Shell to provide engineering, procurement, and construction (EPC) services for the Penguins FPSO unit underscores its industry clout. For Sidara, acquiring Wood would mean expanding its global footprint and strengthening its position in the competitive engineering consultancy market.
However, the road to a deal is fraught with challenges. Sidara has until March 24, 2025, to either make a firm offer or walk away. With Wood’s shareholders advised to sit tight, the ball is firmly in Sidara’s court.
The Bigger Picture: Geopolitics and Market Volatility
The collapse of the previous deal highlights the delicate balance between corporate ambition and external pressures. Rising geopolitical tensions and financial market instability have made large-scale acquisitions a risky proposition. As Sidara weighs its options, the question remains: Can it navigate these uncertainties to seal the deal this time?
For now, the corporate world watches with bated breath as Sidara and Wood dance their high-stakes tango once more. Will this be the final act, or just another twist in the tale?
