Balfour Beatty Withdraws from Carillion Merger talks over Parsons Brinckerhoff sale
Balfour Beatty has withdrawn from talks with Carillion over a merger after disagreement over the sale of consultancy firm Parsons Brinckerhoff.
Balfour said the termination occurred following Carillion’s “wholly unexpected decision” to only proceed with the deal if Parsons Brinckerhoff remained part of the new combined entity.
Balfour’s statement continued: “It is also contrary to the joint announcement released on 24 July 2014 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 2014.
“This change in the proposed terms is not acceptable to the Board of Balfour Beatty.”
The two major contractors had announced the merger talks last week.
Both companies’ shares fell on the news this morning, with Balfour Beatty’s down 5.5 percent and Carillion’s falling 4.4 percent.
Balfour Beatty said it will now proceed with its own business plan including the Parsons Brinkerhoff sale, which it said was “well underway”, and that it would "actively progress” its search for a new CEO.
Had the merger been successful, Carillion boss Richard Howson was expected to take the job at the new combined entity.