US private equity company Apollo Global has decided to drop its £1.7bn ($1.36bn) takeover bid for British oil and gas engineering company John Wood Group (JWG).
On 4 April 2023, the buyout company made an offer of 240p per share after JWG rejected four earlier bids.
On 17 April, JWG agreed to engage with Apollo and granted it access to due diligence materials.
Apollo had until later this week to either make a formal offer or terminate the talks.
In their comments, neither party gave any justifications for calling off negotiations.
In response to Apollo’s announcement, JWG said: “The Board remains confident in Wood’s strategic direction and long-term prospects and believes that, following a transformative year in 2022, including new executive leadership and a new strategy, Wood is well placed to deliver substantial value for shareholders.”
As per the UK’s acquisition laws, Apollo can’t make a fresh takeover offer for JWG during the next six months.
Concurrently, JWG has teamed up with gas distribution company SGN to accelerate plans for key hydrogen transmission infrastructure in Scotland and southern England.
JWG will deliver three pre-FEED studies over the next 12 months to establish the route and design of new dedicated hydrogen pipelines and associated transmission infrastructure.
JWG executive president of consulting Azad Hessamodini said: “These projects are key enablers for the UK and Scottish Government’s carbon reduction commitments.
“We are delighted to be further growing our relationship with SGN, working together on these hydrogen projects, which are instrumental in decarbonising existing UK gas networks and offering sustainable, low-carbon fuel across the country.”