Balfour Beatty and Carillion are considering a merger, it has been announced.
Carillion and Balfour Beatty have this evening confirmed that, following an approach from Carillion to Balfour Beatty, the two firms are engaged in preliminary discussions in relation to a possible merger.
The news comes just weeks after struggling Balfour Beatty revealed that it was looking to sell US-based consultant Parsons Brinckerhoff.
In a statement Carillion and Balfour Beatty said their boards believed that the merger of the two groups has the potential to create a market leading services, investments, and construction business of considerable depth and scale. Work is now underway to develop a strategy and outline business plan for a combined entity, underpinned by the evaluation of achievable synergies, future financing arrangements and a number of other essential supporting workstreams.
The two parties have agreed that Balfour Beatty’s publicly announced sale process for Parsons Brinckerhoff, which is already underway, will proceed unaffected by this announcement, subject to achieving acceptable value and terms.
A decision as to whether the firms intend to proceed with a merger will be made by 21 August.