When Sir Ian Wood transformed a family-run boat repair business in Aberdeen into a global engineering force, few would have predicted that five decades later, the company would be sold for a fraction of its former value — to a Dubai-based conglomerate.
But that’s exactly where things stand today.
The board of John Wood Group plc, once valued at over £5 billion and a flagship of Scotland’s industrial prowess, is now recommending a £242 million takeover offer from Sidara, a firm headquartered in the United Arab Emirates. Alongside the bid comes a promised £340 million capital injection. The two companies describe the deal as a lifeline — a rescue from crushing debt and tumbling stock prices.
Whether it’s a much-needed reset or yet another blow to Scottish business identity depends on who you ask.
A Cautionary Tale of Overreach
At its peak, Wood employed more than 50,000 people worldwide. It never drilled for oil itself — that was never the business model. Instead, it provided the engineering muscle behind the scenes: design, infrastructure, maintenance, and operational support for the global energy sector.
But ambition got the better of it.
The 2017 acquisition of AMEC Foster Wheeler, a struggling US rival, turned out to be a poisoned chalice. The move saddled Wood with liabilities it couldn’t handle. Governance unraveled. Debt piled up. Annual accounts were delayed. Shareholders fled.
From a high of £9 per share in 2013, Wood’s stock now trades at just 28p.
With £740 million in debt looming — and terms already being breached — the board concluded there were few viable options left. Sidara’s offer, though far below historical valuations, now looks like the most attractive way forward.
Familiar Pattern, Fading Power
Wood’s likely sale marks the latest chapter in a long story: Scotland’s dwindling roster of domestically controlled major companies.
The trend has become eerily familiar. The players change, but the pattern repeats:
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Scottish & Newcastle Breweries was carved up by global rivals like Heineken.
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Stagecoach, the transport giant from Perth, sold to German investors in 2022.
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Alexander Dennis, reborn as a proud Scottish bus-maker, now part of a Canadian group.
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FanDuel, the online betting unicorn, was snapped up in a way that left founders bitter and litigious.
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Skyscanner went to Chinese ownership.
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Standard Life, Clydesdale Bank, TSB, Scottish Widows, Scottish Provident — all now subsumed or merged under outside control.
Even Scottish Power, once a pillar of nationalised energy, was sold to Spain’s Iberdrola nearly two decades ago — though that has arguably turned into a rare success story, with Glasgow now the operational hub for global renewables development.
A Local Loss with National Ripples
While Sidara insists it will retain jobs and grow the business under its umbrella, there’s more at stake than payroll.
Headquartered companies pump money into their local ecosystems in quiet but crucial ways — commissioning local consultants, auditors, advertisers, IT firms, and PR agencies. They sponsor sports clubs, university labs, local festivals. They sit in boardrooms, chambers of commerce, and civic events. That soft power — economic, cultural, and social — tends to disappear when control moves abroad.
The worry isn’t just symbolic.
“The departure of another corporate HQ means fewer high-value jobs in Scotland, fewer career ladders in engineering and business, and less influence over strategic decisions,” said a senior executive at a rival energy services firm. “It’s the slow erosion of our economic agency.”
Sidara’s Pitch: A Bigger Platform, Not a Breakup
Sidara, for its part, is keen to frame the deal as a growth opportunity. Executives say the Wood Group will benefit from access to Sidara’s broader portfolio of clients across the Middle East, Asia, and Africa. The company also promises that staff will be given chances to work across its divisions — suggesting a more international role for Wood’s workforce.
With more robust finances, Sidara argues, the group can escape its debt spiral and expand again.
Still, for many in Scotland, it’s hard to shake the sense of déjà vu.
A Broader Identity Crisis for Scottish Business?
What does Scotland make now? What does it own?
In the mid-to-late 20th century, there was a growing belief that Scotland could compete globally not just with its products — whisky, oil, finance — but also with its corporate governance, talent, and entrepreneurialism. That belief has been dented.
Of course, globalisation has made ownership more fluid. A company’s flag matters less to some investors than its fundamentals. But in Scotland, the symbolism of losing another titan feels weightier.
“Wood was one of the last great Scottish engineering brands with a serious international footprint,” said one oil industry veteran. “If it goes, what’s left at that scale?”
There Are Still Bright Spots…
It’s not all grim.
SSE, headquartered in Perth, remains independent and ambitious, pushing aggressively into renewables with major projects across the UK and Europe.
And Iberdrola’s Scottish Power has proven that a foreign-owned firm can still make Glasgow central to its strategy — not just an outpost.
But the reality is stark. Scotland once dreamed of growing its own corporate champions. Increasingly, it seems to be grooming them for sale.
