PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

PaintSquare


Coatings Industry News

Main News Page


UK Construction Giant Nixes Merger

Tuesday, August 5, 2014

More items for Program/Project Management
More items from Europe

Comment | More

Balfour Beatty has shut down merger talks with Carillion only one week after announcing the possible £3 billion ($5 billion USD) deal, citing disagreement over the terms.

The companies jointly announced the potential merger July 24, saying the deal "has the potential to create a market-leading services, investments, and construction business of considerable depth and scale."

However, Balfour Beatty announced Thursday (July 31) that it was immediately terminating discussions following Carillion's "wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity."

Balfour Beatty
balfourbeatty.com

UK-based construction giant Balfour Beatty has terminated merger talks with Carillion only one week after announcing the possible £3 billion ($5 billion USD) deal.

Parsons Brinckerhoff is a multinational engineering and design firm that operates as a wholly owned subsidiary of Balfour Beatty.

Founded in 1909, London-based Balfour Beatty provides construction, engineering and facilities management services in over 80 countries.

Wolverhampton, UK-based Carillion was formed in 1999 when the Tarmac Group divested its support services and construction businesses. The company's integrated support services include construction services, facilities management and public private partnership project investments.

Satisfying Merger Requirements

On Thursday, Carillion said that its board had concluded that for the merger to satisfy its requirements, "it would be essential to retain the stability and dependability of Parsons Brinckerhoff's earnings."

Balfour Beatty said that change is "contrary to the basis upon which the Balfour Beatty Board agreed to engage in preliminary discussions."

Balfour Beatty announced May 6 that a strategic review had led it to evaluate options for selling Parsons Brinckerhoff, which it acquired in 2009. At the same time, the company also announced that CEO Andrew McNaughton had stepped down, effective immediately.

Carillion 'Surprised' by Reaction

Additionally, Balfour Beatty said Carillion's desire to retain Parsons Brinckerhoff contrasts with a joint announcement on July 24 that confirmed the sale of Parsons Brinckerhoff would be unaffected by the merger discussions, as well as a presentation Carillion made July 28 to the Balfour Beatty board.

Carillion
Flickr.com / Carillion

Carillion's Board said the merger requirements would count on Balfour Beatty retaining Parsons Brinckerhoff instead of selling it as the company has planned since May. Balfour Beatty said that conflicts with previous discussions between the two companies.

"The board of Carillion is surprised by Balfour Beatty's reaction as the work to date has led to increased confidence in the potential to realize very material value for the benefit of both sets of shareholders," the company said.

Balfour Beatty will proceed "in accordance with its own business plan," which will include the competitive sale process of Parsons Brinckerhoff and its search for Group CEO. 

   

Tagged categories: Construction; Facility Managers; Finance; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Waterjet Technology Association (WJTA)
 
Click to register today!
 
See the latest automated and handheld UHP waterblasting tools/systems/products. Exhibits, live demos, educational sessions, waterjet short course, networking.
 

 
SEMicro Division, M.E. Taylor Engineering, Inc.
 
Coatings Adhesion Testers
 
The PATTI® accurately measures the bond strength between coating & substrate. Outfitted properly, the surface can be rough, porous, or curved & >10K psi strong!
 

 
Detail Masters
 
Overspray Removal
 
We offer professional, turnkey service and unparalleled quality!
Our process can save hundreds— even thousands of dollars. It's fast, environmentally safe and 100% guaranteed.
 

 
SABRE Autonomous Solutions
 
Safety
 
Removing blasting operators from harmful environments is our key objective.
 

 
HoldTight Solutions Inc.
 
NO FLASH RUST - NO CONTAMINANTS
 
Our HoldTight®102 salt remover & flash rust
preventer prevents flash
rust by removing surface contaminants. Contact us
for your nearest distributor.
(800) 319.8802 sales@holdtight.com
 

 
Polygon
 
POLYGON - Temporary Humidity Control
 
We specialize in innovative climate control solutions for industrial painting, utilizing alternative energy sources and combining desiccants with heating or cooling.
 

 
PPG Protective and Marine Coatings Group
 
We Protect and Beautify the World
 
PPG is widely recognized as a world leader in protective and marine coatings, developing innovative, cutting-edge products and services.
 

 
CHLOR*RID International Inc.
 
SOLUTIONS THAT WORK
 
Companies that invest in corrosion control use CHLOR RID products
  • Soluble salt removal liquid
  • Test kits to verify contamination levels
  • Surface passivation to hold the blast
INFO@CHLOR-RID.COM 800.422.3217
 

 
Jotun Paints Inc.
 
Jotachar JF750 - The Time Saving Solution
 
The only mesh free solution for jet fire scenarios. Jotachar saves installation time and material costs - the next generation of epoxy passive fire protection.
 

 
SSPC: The Society for Protective Coatings
 
http://www.sspc.org/
 
Join SSPC and Enhance
Your Career !
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us