John Wood Group has agreed to extend the deadline for its talks with Sidara over a possible takeover deal.

The news comes after the £1.59bn deal between the British engineering firm and the Dubai-based company fell through last year due to "geopolitical risks and financial market uncertainty".

In a statement, the group said that it had received a proposal from Sidara in relation to a "possible cash offer", and therefore it has provided the Dubai-based company with access to due diligence information and has entered discussions.

With talks continuing, Wood Group has had its request accepted for an extension on the date by which Sidara is required to either announce a firm intention to make an offer for the British firm or state that it does not want to make an offer.

Sidara now has until 17 April 2025 to announce its intention.

Investment director at AJ Bell, Russ Mould, stated: "Investors continue to keep their fingers crossed that Wood Group will be acquired for a premium. The bearer of much bad news in recent months, Wood Group’s share price has been like a slinky slowly dropping down the stairs.

"That hasn’t stopped certain opportunistic investors from betting on the company being taken private at a higher price than its shares currently trade. News that Sidara has been given more time to conduct due diligence gave the stock a bump, but there is no guarantee a firm deal can be reached."

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