Sidara has pulled out of the potential purchase of the British oil services firm, John Wood Group, citing "geopolitical risks and financial market uncertainty" as the reason.

It comes after Sidara made a "final" £1.59bn offer for John Wood Group in May.

The firm has not specified which risks they mean in particular, but analysts have pointed towards the current Middle Eastern conflict as the main attributor.

John Wood Group, which is headquartered in Aberdeen, makes 18% of its revenue in the Middle East and Africa.

The Guardian has reported that shares at the FTSE 250-listed firm dropped by 37% to 124 pence in early trading, putting it on course for its lowest close since October 2022.

Sidara was founded in Lebanon in 1956 and has generated revenues of $2.8bn with operations across the US, EMEA and Asia.

The firm is a privately-owned working partnership with no external shareholders.

Head of financial analysis at AJ Bell, Danni Hewson, said: "Disappointment coupled with uncertainty sent shares in John Wood Group plunging a whopping 37% as it updated markets that an anticipated takeover by engineering firm Sidara wouldn’t go ahead.

"The Dubai company had been wooing John Wood for months, with three offers failing to win over the board of the Scottish company.

"But a couple of extensions later Sidara is walking away. The global outlook has shifted, market volatility has gripped investor sentiment and Sidara might well be breathing a sigh of relief that the lengthy courtship ended as it did, when it did.

"Companies are battening down the hatches as they consider the state of the world and prepare to ride out the potential storm."

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