Balfour Beatty looks to sell US arm Parsons Brinckerhoff in latest Carillion merger battle twist
The long battle over a possible £3bn mega-merger between Carillion and Balfour Beatty took another turn last night, as Balfour was believed to be in advanced negotiations to sell its US business Parsons Brinckerhoff (PB) to a Canadian bidder, adding to the pressure facing Carillion as it has been considering its options for another offer for its rival.
The negotiations between Balfour Beatty and Canadian engineering company WSP Global are believed to be at a crucial stage, with discussions ongoing for a potential deal that could value PB at around $1.2bn (£717m), according to Sky News.
The planned sale of PB was a major factor in the initial falling out between Carillion and Balfour, with Carillion strongly desiring the company be retained as part of merger proposals, but Balfour adamant that it was right to go ahead with a sale now at what it viewed as the top of the market.
Earlier in the day major shareholders spok out on the possible Carillion/Balfour merger, as David Cummings, head of UK equities at Standard Life, which has stakes in both Carillion and Balfour, said on BBC Radio Four that he believes “there is a case for a merger.”
Carillion has till Thursday to make an offer or walk away for six months.