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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.”