黑洞社区

Balfour Beatty has ended merger talks with Carillion, saying the decision was made after Carillion changed its mind and insisted it wanted Balfour鈥檚 consultant arm Parsons Brinckerhoff to be included in the combined entity.

Balfour Beatty had announced its intention to sell Parsons Brinckerhoff in May. When the two firms , they said, in a statement, that the sale of the 拢160m-turnover consultant, which is already underway, 鈥渨ill proceed unaffected鈥� by the possible merger.

But in a statement to the City this morning, which Balfour Beatty said was made without the consent of Carillion, Balfour said it had terminated the discussions over a merger following Carillion鈥檚 鈥渨holly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity鈥�.

The firm added: 鈥淭his change is contrary to the basis upon which the Balfour Beatty Board agreed to engage in preliminary discussions.

鈥淚t is also contrary to the joint announcement 鈥� which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty鈥檚 Board by Carillion.

鈥淭his change in the proposed terms is not acceptable to the board of Balfour Beatty.鈥�

Balfour Beatty said it would now 鈥減roceed in accordance with its own business plan, including the competitive sale process of Parsons Brinckerhoff currently well underway鈥�.

The firm said it would also continue its search for a new group chief executive, following the exit of Andrew McNaughton in May.

Following Balfour Beatty鈥檚 statement, , hitting out at Balfour for its 鈥渦nilateral鈥� move to end the merger talks, and stating it still believed there was a powerful case for a merger between the two firms.