Via a statement on its website, Balfour Beatty has announced that talks with Carillion over a potential merger have fallen through. The termination of discussions follows Balfour Beatty’s claim that Carillion was only willing to progress with a possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity.
According to Balfour Beatty, that change is contrary to the basis upon which it entered into preliminary discussions. It would also be contrary to the joint announcement released last week which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions.
A deal with Balfour, which operates in more than 80 countries providing construction, engineering and facilities management services, would have significantly expanded Carillion’s international business.
Carillion, which maintains British railways, roads and military bases, said in March that it planned to diversify its support services business into sectors such as oil, power distribution and highways maintenance.
Balfour said in July it would take another £35million hit to its profit after trading in its mechanical and electrical engineering division deteriorated.
