Construction services firm Carillion’s (LSE: CLLN) proposed merger with Balfour Beatty (LSE: BBY) has hit the rocks. Carillion wanted the deal to include Balfour’s Parsons Brinckerhoff business, which would bring stable profits and strong cash flow. Balfour Beatty had already put this business up for sale and said “no”.
Carillion is a well-managed business and does a good job building things for the government and then looking after them. However, it has struggled to grow its profits organically over the last five years. The company has a record of growing by buying other companies.
During the last [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 4 week FREE trial to get instant access.