Dive Brief:
- Carillion has given up on talks to merge with Balfour Beatty after it rejected an offer the British company made Tuesday.
- This was the third offer of Carillion's that Balfour Beatty rejected in merger talks.
- Carillion's plan to keep Balfour subsidiary Parsons Brinckerhoff, which Balfour has been looking to sell, did not sit well with Balfour. It was also unconvinced of promises that the merger would save millions of dollars.
Dive Insight:
Some analysts have said the called-off talks a "missed opportunity" for Balfour Beatty, since the company has seen waning profits and a departure of their CEO in recent months. Balfour believes that selling Parsons Brinckerhoff is a better plan for shareholders than a merger. The company will also not seek an extension of the takeover deadline, which means Carillion cannot present another offer for six months.