Balfour Beatty has terminated discussions with Carillion over a possible merger deal.
Last week the two companies revealed that they were in talks over a possible merger, but discussions ended suddenly after Carillion said the deal would only progress if Balfour’s Parsons Brinckerhoff business remained part of it.
In a statement Balfour Beatty said: “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. 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.”
The company will now proceed with its own business plan, including the competitive sale process of Parsons Brinckerhoff currently well underway. It will also continue to actively progress its search for a group CEO.