Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Babcock buys VT Group, ending Mouchel speculation

Contractor and defence specialist Babcock will buy service provider VT Group for £1.3bn, ending months of speculation over whether consultant Mouchel would be bought.

Both VT Group and Babcock specialise in defence, but VT Group had indicated it wanted to move out of this sector to concentrate on public sector work, and made an approach to buy consultant Mouchel to complete the transition.

However, Babcock launched a counter-bid for VT Group, which would further entrench the combined group in the defence sector.

VT chair Mike Jeffries said: “The VT Board believes that Babcock’s offer represents an attractive proposition for VT Shareholders both through the immediate offer premium and through the opportunity to benefit from the synergies available from combining our two businesses.”

VT Group seemed intent on buying Mouchel, and city gossip suggests Mouchel’s major shareholders were in principle in favour of a £330M deal.

However, VT Group’s shareholders clearly favoured the combination with Babcock - the two companies had been in merger speculation for the best part of a decade.

Mouchel is now unmolested, and its share price has stabilised around the 200p mark. Today’s news, which ends VT Group’s courting of Mouchel, has not affected Mouchel’s share price, which rose a fraction of a percent in early trading.

Babcock’s chairman Mike Turner, said: “The acquisition of such a high quality and complementary business is in line with our strategy to be the leading engineering support services company in the UK. We look forward to bringing the enhanced capabilities of the enlarged Babcock to new and existing customers”.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.