Balfour Beatty has terminated discussions with Carillion over a potential merger after it emerged that Carillion was only interested in the firm if Parsons Brinckerhoff remained part of the group.
Balfour Beatty had previously announced its intention to sell Parsons Brinckerhoff and it says that this remains the plan.
In a statement this morning Balfour Beatty has said that it is terminating discussions with Carillion regarding a possible merger with “immediate effect”.
“The termination of discussions follows Carillion’s wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity,” said Balfour Beatty.
Says the statement: “This change is contrary to the basis upon which the Balfour Beatty Board agreed to engage in preliminary discussions. It is also contrary to the joint announcement released on 24 July 2014 which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty’s Board by Carillion on 28 July 2014. This change in the proposed terms is not acceptable to the Board of Balfour Beatty.”
Balfour Beatty said it will proceed in accordance with its own business plan, including the competitive sale process of Parsons Brinckerhoff that is currently “well underway”. It said will also continue to actively progress its search for a Group CEO.