Balfour Beatty rejects Carillion a second time

Balfour Beatty operatives carrying out pylon works. Photo courtesy of Balfour Beatty
Balfour Beatty operatives carrying out pylon works. Photo courtesy of Balfour Beatty

Balfour Beatty this morning rejected a second merger approach from Carillion, at the same time as announcing a fall in profits for the first half of the year.

 

Weekend press reports suggested that Balfour Beatty and Carillion might patch together a new deal following Balfour’s sudden breaking off of talks last month after Carillion insisted on keeping Parsons Brinckerhoff as part of the merged group. Balfour Beatty however insisted that the sale for a hoped for £650M was to proceed, killing the deal that would have created a merged group with a £3Bn stock market capitalisation and around 80,000 engineering staff.

 

This morning however Balfour Beatty issued a statement stating a number of reasons for rejecting the revised offer, including several risks that ‘cannot be mitigated’, including undermining the Parson Brinckerhoff sales process. The board said there was a risk that a failed sale process would ‘materially impact the motivation and retention of Parsons Brinckerhoff management and employees’ and damage its competitive position in a rapidly consolidating professional services market.

 

Balfour Beatty’s half year results are in line with recent trading updates, with underlying profit of £22M, down from £47M for the same period last year because of problem contracts in the mechanical and electrical services division. Professional services performance was in line with last year and Support Services profits had increased.

 

Infrastructure investments performed well with disposals significantly above directors’ valuations. The order book was described as stable at £13Bn, down 1% from a year ago at constant currency.

Please rate

Comments 

Ctrl + Enter

Most Read

What To Look Forward to in the 4th Year of AMP6 and Beyond

What To Look Forward to in the 4th Year of AMP6 and Beyond

As we move into the 4th year of the 5-year cycle of AMP6, and with AMP7 on the horizon in 2020, the UK will continue to see a shift in focus to increasing efficiency and decreasing total expenditure for companies. In recent AMP periods, the focus lied in increasing value for customers (i.e.

Congratulations to Barhale on Their Recent Award

Congratulations to Barhale on Their Recent Award

At Anglo Technical Recruitment, we pride ourselves on aligning with best and the brightest individuals and organisations. We are honoured to work with Barhale, recent recipient of the New Civil Engineer 2017 ‘Specialist Tunnelling Project of the Year’ for the Elan Valley Aqueduct (EVA)

What Does Carillion’s Collapse Mean?

What Does Carillion’s Collapse Mean?

The ever burgeoning construction job market took a major hit with the announcement of the construction giant Carillion’s liquidation. Carillion, the second largest construction firm in the UK, also provides public services, facilities management, and maintenance through contracts with small

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.