Carillion guarded on Balfour Beatty’s rejection of revised merger

WOLVERHAMPTON-based construction and facilities management group, Carillion, is keeping its cards close to its chest following the decision by Balfour Beatty to reject terms for a revised merger between the two companies.

Balfour Beatty said in a statement yesterday that it was rejecting the approach because it was still reluctant to abandon the sale of its consultancy Parsons Brinckerhoff.

Carillion has tried twice to persuade Balfour Beatty to change its mind over this as it sees more value for the business with the Parsons Brinckerhoff business included.

Carillion had even offered to reimburse the cost of the sale process so far, providing the bidders could be persuaded to proceed on the basis that the merger did not ultimately happen.

Balfour Beatty said its board had carefully considered the revised proposals but ultimately could not support them.

“While the board is mindful of the synergies that might be achieved through a combination with Carillion, the board has concluded that there are a number of significant risks many of which cannot be mitigated,” it said.

In a statement, the Carillion board said it noted the comments from Balfour Beatty.

“The board of Carillion will give further consideration to its position and will make a further announcement in due course. In the meantime, there can be no certainty that any offer will be made by Carillion or as to the terms on which any such offer might be made,” it said.   

Carillion has until 5pm on August 21 to announce what it is going to do.

It added that its current statement had been made without the consent of Balfour Beatty.