Construction firm Carillion have approached Balfour Beatty about a potential merger, the two companies have confirmed.
In a note to shareholders this morning Carillion said the boards of the two firms were in talks to develop a strategy and outline business plan.
Both companies, who employ hundreds across North East bases, have agreed that Balfour Beatty’s publicly announced sale process for Parsons Brinckerhoff, which is already underway, will go ahead, regardless of the talks.
As yet it is unclear what structure a merger would take, although a decision on the talks is expected by 5pm on August 21.
Any deal would require both companies to recommend the move to their shareholders for approval.
Both Carillion and Balfour Beatty said the move has the potential to create a company with “market leading services, investments, and construction business of considerable depth and scale.”
The Journal recently reported Carillion’s appointment as preferred bidder for £75 million redevelopment works at Liverpool Football Club’s Anfield Stadium.
