Balfour Beatty calls off Carillion merger talks

Aaron Morby 8 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

Greswolde Construction goes under

Solihull contractors ceases trading with 24 jobs lost
2 days ago

Designs revealed for £1bn London Blackfriars tower blocks

Fosters design landmark green office skyscraper and two blocks of flats for Southwark site
3 days ago

Everton stadium job still on budget despite inflation

Club and Laing O'Rourke confident they can still build new ground for £500m
3 days ago

Construction output falls 1.4% halting 7-month growth spurt

Fresh output and orders figures confirm summer construction slowdown
3 days ago

McLaren gets green light for £85m build-to-rent scheme

Construction set to start this autumn on major city centre development
3 days ago

BAM limbers up for £25m Bedworth leisure centre

Pioneering Warwickshire health and fitness hub to start this autumn
3 days ago

Keepmoat to start four-year build in Wigan

Major regeneration scheme to start across four sites
3 days ago

Solihull contractor Greswolde heading for administration

New investors took over business 12 months ago
4 days ago

Duo win £500m canal and river main works deal

Kier and Bentley bag Canal & Rivers Trust's largest ever water engineering works deal
4 days ago

Construction Manager of the Year finalists revealed

70 of the industry's brightest talents: Full list
4 days ago

Willmott Dixon fills new strategic change director role

Vistry Group change director joins private builder to support future growth
4 days ago

Work starts on £42m Oldham Spindles overhaul

Willmott Dixon signs off £42m deal to create new market, offices and event space
4 days ago

Firms wanted for Telford & Wrekin £1.6bn building works DPS

Call up for dynamic purchasing system covering building and refurbishment work
4 days ago

Kier pulls off contracts league double in July

Contractor bags highest value of new work and tops rolling 12 months ranking
5 days ago

Hinkley Point C giant water intakes craned onto seabed

Video: contractors complete one of the world’s most complex marine engineering projects
5 days ago

Taziker revenue jumps 30% to record £73m

Multi-disciplinary engineering specialist boosts headcount to 366 staff
5 days ago

Consultant buys scaffolding contractor

RSK Group makes MG Scaffolding its latest acquisition
5 days ago

M&E specialist gears up for £16m Aston Martin package

Major package award on McLaren Silverstone site
5 days ago

Plans in for Brentford 110-flat canalside scheme

Makers’ Yard mixed commercial and residential use scheme
5 days ago

WSP to buy consultant RPS Group for £591m

5,000 staff at Oxfordshire based firm to join WSP
6 days ago

Countryside puts offsite factory up for sale

Offers invited for Bardon plant which is less than a year old
6 days ago

M&E specialist Spie UK arm returns to profit

French parent group launches a strategic review of UK operations after performance stabilises
6 days ago

Site boss fined for locking out safety inspectors

Police called to enter site before fire fighters rescue workers stranded on roof
6 days ago

Rebid starts for £200m M5 junction job

Cost inflation forces retender for £200m junction 10 rebuild near Cheltenham
6 days ago

New Downing Construction boss named

Andy Thomas takes top job as Ian Orton steps back after 24 years
6 days ago

Plans in for 600 homes at London Aylesbury estate

Notting Hill Genesis aims to start work next year on phase 2 of Southwark estate rebuild
6 days ago

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
1 week ago

TopHat cuts losses and aims for profit in three years

Modular specialist investing for future as latest results show £19.4m loss
7 days ago

Story Contracting names next chief executive

Andy Joy to be promoted to CEO as Jason Butterwork becomes vice chairman
7 days ago

Stalled £100m North London build-to-rent tower to start

Essential Living commits to start Swiss Cottage scheme six years after planning OK'd
7 days ago

Contractor services