Member Article

Balfour Beatty announce shock termination of merger with Carillion

Infrastructure group Balfour Beatty has reported today that the merger with construction firm Carillion will no longer go ahead.

Last week, the UK’s two largest contractors, who both have bases in the North East, announced that they were in merger talks.

Balfour Beatty has undergone several financial difficulties in recent months, including four profit warnings causing the sudden resignation of chief executive Andrew McNaughton.

The merger, which was expected to be worth approximately £3 billion, has been terminated by Balfour Beatty based on the agreement Newcastle-based Parsons Brinckerhoff would remain part of the potential combined entity.

In earlier discussions, it was agreed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions.

Balfour Beatty is due to report interim results next month.

This was posted in Bdaily's Members' News section by Ellen Forster .