Balfour Beatty has ended discussions for a proposed £3 billion merger with Carillion and angrily accused its construction industry rival of scuppering the proposed tie-up.
In a move that ends hopes that two of Britain’s largest construction companies could create a global powerhouse, Balfour Beatty said that it had halted negotiations because of Carillion’s “wholly unexpected decision” to insist that a sale of part of Balfour’s American business be scrapped.
Balfour, weakened from a string of profit warnings and rudderless without a chief executive, had been planning to sell Parsons Brinckerhoff to appease shareholders after tough trading. It said yesterday that it had entered into talks with Carillion only on the clear understanding that the sale of the US consultancy, which it bought for £380