Balfour Beatty calls off Carillion merger talks

Aaron Morby 10 years ago
Share

Balfour Beatty has pulled out of talks with Carillion to create a UK super-contractor.

The sudden decision to abandon merger talks came after a row flared up over the sale of consultant Parsons Brinckerhoff.

Balfour Beaty said it entered into talks on the basis that it would first proceed with the sale of Parsons Brinckerhoff, but Carillion wanted to keep the global consultancy business as part of the merger deal.

A statement from Balfour Beatty said: “The termination of discussions follows Carillion’s wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity.

“This change is contrary to the basis upon which the Balfour Beatty board agreed to engage in preliminary discussions.

“It is also contrary to the joint announcement released on 24 July, which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty’s Board by Carillion on 28 July .

“This change in the proposed terms is not acceptable to the Board of Balfour Beatty.”

The news will come as a relief to many staff at Balfour Beatty and Carillion who feared heavy jobs cuts in the UK if the merger went ahead.

Share price gains after the announced merger talks were wiped out in early City trading.

Balfour Beatty said it would now proceed with its own business plan, including the competitive sale process of Parsons Brinckerhoff currently well underway.

The firm also said it will continue with its search for a top-flight CEO.

Carillion first approached Balfour Beatty around two months ago, after Balfour announced its latest £30m profit warning, leading Andrew McNaughton, Balfour Beatty group chief executive to exit.

Balfour at the same time revealed plans to sell its consultant arm Parsons Brinckerhoff to once again focus on UK and US contracting.

The latest announcement indicates that Balfour has found a buyer and is in advanced talks.

The sale of Parsons Brinckerhoff would bring a much-needed cash injection to Balfour Beatty.

 

 

 

Latest news

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
16 mins ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
17 mins ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
4 hours ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
3 hours ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
4 hours ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
4 hours ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
15 hours ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
21 hours ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
1 day ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
1 day ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
1 day ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
1 day ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
4 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
4 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
4 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
4 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
4 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
4 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
5 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
5 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
6 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
5 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
5 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
5 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
6 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
5 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
6 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
6 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
6 days ago

Contractor services