Atkins, WSP compete for Parsons Brinckerhoff

Pair vying with private equity buyers for Balfour Beatty-owned firm

NEWS, Business, Atkins, Balfour Beatty, Carillion, Mergers, Parsons Brinckerhoff, Wsp

Building consultancy firms Atkins and WSP are reported to be among the front runners to buy out the Parsons Brinckerhoff engineering arm from contractor Balfour Beatty, according to reports.

The Sunday Telegraph stated that the two firms are competing with a pair of private equity buyers for Parsons Brinckerhoff, which was responsible for a breakdown in merger talks between Balfour Beatty and Carillion late last month.

Balfour Beatty bought Parsons Brinckerhoff in 2009 but announced in May this year that it had decided to sell the business.

It stated that although the firm had performed well and grown under its ownership, the deal had not "delivered material competitive advantage it had expected from being able to service design & build contracts".

Balfour Beatty and Carillion then began talks about a $5.9bn merger on 24 July, which the pair initially said would not impact on the sale of Parsons Brinckerhoff.

However, Balfour Beatty announced on 31 July that it had ended talks once Carillion insisted that Parsons Brinckerhoff be retained as part of the deal.

The firm said the change in terms by Carillion was unacceptable, adding that the sale of Parsons Brinckerhoff was "currently well underway".

Carillion replied by stating that it felt it was "essential to retain the stability and dependability of Parsons Brinckerhoff's earnings" if it were to proceed with any merger.

Parsons Brinckerhoff has recently won project management deals for part of the Doha Metro as well as a project management joint venture deal with Fluor to manage the Saudi Landbridge project.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020