UK Engineering Firms Chemring and Wood Group Face Foreign Takeover Bids

US-based Bain Capital and Dubai’s Sidara have shown interest in acquiring the British companies, citing undervaluation on the FTSE 250.

Chemring, a UK defence company supplying flares and decoys for fighter jets, rejected an initial £1.1 billion bid from Bain Capital, which valued shares at 390p each.
Bain Capital is reportedly preparing a second offer, though analysts argue that any successful bid would need to exceed 500p per share to reflect Chemring’s growth potential.
Wood Group, an Aberdeen-based energy consultancy, has received renewed interest from Dubai’s Sidara, following a failed £1.6 billion takeover attempt in 2024.
Both companies are part of a broader trend of undervalued UK firms attracting foreign private equity interest, with recent examples including Britvic and Royal Mail’s parent company being taken private.
Chemring’s strong position in defence markets, bolstered by global rearmament efforts and contracts tied to F-35 jets, contrasts with Wood Group’s struggles, including governance issues and a sharp drop in valuation.