Sidara is reportedly worried about the potential legal exposure from the probe, which was announced last month. The Abu Dhabi-based group has until 28 July to make a firm offer on its non-binding £242 million proposal for the crisis-hit Aberdeen company, a deadline that has already been extended several times.

Any firm offer from Sidara is conditional on Wood Group publishing its delayed 2024 accounts, which has led to the suspension of its shares since April. The delay has also been a source of frustration for the potential buyer, Financial Times reports.

The FCA investigation covers the period from January 2023 to November 2024 and was prompted by an independent review by Deloitte. Wood Group commissioned this review, which uncovered “material weaknesses and failures in the group’s financial culture”. The findings included “inappropriate management pressure” and information being “inappropriately withheld” from auditors. As a result, Wood Group has stated it will need to restate its accounts for 2022 and 2023.

A reduced offer would be a further blow for Wood Group, which has seen its value plummet. The company, which struggled with debt after its £2.2 billion acquisition of Amec Foster Wheeler in 2017, rejected a far higher £1.5bn offer from Sidara last year. At the time of its share suspension, Wood Group’s market capitalisation stood at £127m, a fraction of its £5.3bn peak in 2018.