Carillion Plans Another Balfour Beatty Bid
UK construction company Carillion has indicated a third attempt to merge with Balfour Beatty will be coming soon.
In a statement published alongside its half year results, Carillion's board set out the £1.5bn savings it believed a merger could make for the two companies.
Carillion posted a pre-tax profit of £65.7m, a 5% rise for the six months to the end of June compared to the same period last year, when its pre-tax profit was £64.2m.
The statement was approved by Carillion's advisors HSBC and Lazards, and pointed to synergies between it and Balfour Beatty in a variety of business areas including supply chain and IT.
It said it envisages the merged group would see two-thirds of its operating profit come through services and investments, with only one third coming from construction.
The FTSE 250 company told Sky News its half year results had been released a week early as it had made financially sensitive information available to Balfour Beatty shareholders which it is obliged to share with the wider market.
Further meetings with shareholders have taken place since Carillion made a £3bn offer for Balfour Beatty on Monday.
Speaking then, executive chairman of Balfour Beatty Steve Marshall said: "In our board's judgement, it wasn't a credible proposal that was going to fix all the risks for Balfour Beatty shareholders."
Balfour Beatty announced a drop in profits of over 50% compared to the same period last year in its half year results on Monday, which followed a series of profit warnings over the past 18 months.
On Thursday, Carillion pointed to "the powerful strategic logic and financial benefits of a merger" and said it would make "a further announcement in due course".