Financial Turmoil: Wood Group's Costly Missteps and Sidara's Strategic Takeover
The Financial Conduct Authority fined Wood Group nearly £13 million for inaccuracies in its financial results, which were influenced by projects' poor performance. This led to a significant drop in share price and a takeover by Sidara. The deal is set to close on March 10.
The Financial Conduct Authority fined Wood Group almost £13 million for publishing inaccurate financial results for 2022, 2023, and early 2025. The errors stemmed from poor project performances, leading to decisions influenced by desires to maintain prior financial outcomes. Lacking proper systems, Wood Group faced significant consequences.
The issues surfaced in November 2024, triggering an 85% plunge in Wood Group's share price by April 2025 and resulting in a suspension of trading the following month. Consequently, the company agreed to a $292 million acquisition by Dubai-based Sidara later in the year.
Sidara had initially made a lower bid in August 2025 after regulatory scrutiny, making its offer contingent on the publication of delayed 2024 results and the maintenance of certain debt facilities. Wood Group met the conditions and expects the deal to finalize by March 10.
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