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 

Name
Email
  Ctrl + Enter

Most Read

Thames Water announces partners for its AMP7 programme

Thames Water announces partners for its AMP7 programme

The clean and wastewater projects will include schemes to provide additional resilience to potable water supplies and protecting and enhancing the environment within communities across London and the Thames Valley. The frameworks are extendable into AMP8 and could see Thames award up to £4

Suttons Tankers wins Yorkshire Water £60m AMP7/8 contract

Suttons Tankers wins Yorkshire Water £60m AMP7/8 contract

The bioresources sludge removal and transport services deal will cover the transportation for all internal liquid sludge and raw sludge cake from sewage works to sludge treatment centres. Over the course of the contract a 15% carbon savings has been forecast, which forms part of Yorkshire

Govt & Ofwat call on water companies to accelerate AMP7/8 plans

Govt & Ofwat call on water companies to accelerate AMP7/8 plans

In an joint letter to UK water companies, the Government, the Environment Agency, the Drinking Water Inspectorate, Ofwat and CCW have called on them to accelerate their existing AMP7 plans – and consider bringing future investment from 2025 and beyond forward.The letter says they can play

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.