Apollo drops Wood takeover move

A deal to take over UK consulting and engineering firm Wood will not move forward.

After a series of proposals, the US-listed private equity group Apollo has decided to step back and not make any further bids for the Aberdeen-headquartered business.

“Following an extended period of detailed engagement, the board notes the announcement by Apollo today that it does not intend to make an offer for Wood,” the company said in a filing on Monday.

Last month, Apollo had offered a final buyout price valuing the company at about $2.1bn, after Wood rejected four previous proposals. Wood’s board said the bid undervalued the group and gave Apollo until May 17 to either submit a formal offer or walk away from the deal.

Following Apollo’s decision, the Ken Gilmartin-led firm, which provides consulting, projects, and operations solutions in more than 60 countries, employing over 35,000 people, said its board “remains confident in its 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.”