4
NEWS
CONSTRUCTION EUROPE
SEPTEMBER 2014
2014
Europlatform
September 25, 2014
Berlin, Germany
World Demolition
Summit
November 6, 2014
Amsterdam, NL
summit.com
ALH Conference &
Awards
November 11, 2014
Miami, US
Bauma China 2014
November 25 - 28, 2014
Shanghai, China
bC India 2014
December 15 - 18, 2014
Delhi, India
2015
World of Concrete
February 3 - 6, 2015
(Seminars: February
2 - 6)
Las Vegas, US
.
com
Intermat 2015
April 20 - 25, 2015
Paris, France
construction.com
Plantworx
June 2 - 4, 2015
Bruntingthorpe, UK
Bauma ConExpo Africa
September 15 - 18, 2015
Johannesburg,
South Africa
ConExpo Latin America
October 21-24, 2015
Santiago, Chile
latinamerica.com
2016
Bauma (Munich)
April 11-17, 2016
Munich,
Germany
EVENTS DIARY
Merger of Carillion and
Balfour Beatty rejected
over ‘considerable risks’
Negotiations between the rival firms finally break down as
an agreement proves elusive
A
last-ditch attempt by the UK's Carillion to forge
a merger with Balfour Beatty has failed over
concerns about potential financial savings that
the deal could have achieved.
A third and final offer had placed a valuation of just
over £2 billion (€2.5 billion) on its rival firm, with Carillion
increasing its offer so that 58.2% of the combined
company would be owned by fellow UK-based firm
Balfour Beatty‘s shareholders.
However, considerable doubts remained over the
forecast savings figure of £1.5 billion (€1.88 billion) that
could have been made through sharing IT systems and
supply chains.
Balfour Beatty’s ultimate rejection of the move cited
“considerable risks associated with the proposed
business plan”. It said this included a strategy to reduce
significantly the scale of the UK construction business,
at a point where it had forecast an upturn in its fortunes
this year.
Its board members, who unanimously rejected the
merger which would have created a combined group
worth £3 billion (€3.7 billion), also raised major concerns
over Carillion’s insistence on cancelling Balfour’s plans to
sell its US-based business, Parsons Brinckerhoff.
Balfour Beatty had projected that this deal would bring
a total of £200million (€250.4million) to its shareholders,
offsetting a troubled financial year in which the firm
had issued profit warnings. Its chief executive, Andrew
McNaughton, also stood down earlier this year over its
financial performance.
His departure came as the company issued a trading
statement in May that projected a £30 million profit
shortfall, which was largely blamed on performance
across its UK operations.
Carillion chairman Philip Green had claimed that
forging the merger could “create a world-class business
of significant value for the shareholders of both
companies”.
The decision came as Carillion had released its half-
year results, which showed revenues down year-on-year
at £1.87 billion (€2.25 billion) compared with £1.96
billion (€2.44 billion) for the same period in 2013.
However, the firm claimed that its underlying profits
before tax were up 3% to £75.9 million (€93.95 million),
meaning it was in a strong position to take the proposed
merger forward.
But after failing to convince Balfour of the deal before
a “put up or shut up” deadline in August, Carillion said
that it reserved the right to reconsider a further merger
bid, which would be legally possible in six months’ time.
In light of its decision, Balfour Beatty has insisted that
it will continue with its business strategy as a standalone
company.
Its stated priorities include concluding the sale of
Parsons Brinckerhoff, recruiting a new chief executive
and improving the margins of its UK operations.
ce
Rolls-Royce gains full control of Power
Daimler has exercised a
put option to sell its 50%
interest in Rolls-Royce
Power Systems (RRPS)
to Rolls-Royce for €2.43
billion.
RRPS was previously
known as Tognum
and makes engines for
construction equipment
applications under the
MTU brand.
John Rishton, chief
executive of Rolls-Royce,
said, “We are pleased to
welcome Rolls-Royce
Power Systems fully into
Rolls-Royce.
“The business adds
scale and capability
to our reciprocating
engines portfolio. It has
outstanding technology,
operates in long-term
growth markets and
has proved a valuable
addition to our Marine &
Industrial Power Systems
division.”
Ulrich Dohle, chief
executive of Rolls-Royce
Power Systems, added,
“With our well-known
MTU high-speed engines,
MTU Onsite Energy
distributed energy
systems, Bergen medium-
speed engines and
L’Orange fuel-injection
systems, we are proud
that we are now a full
member of the Rolls-
Royce family and look
forward to contributing
to its success.”
The company added
that Daimler would
remain a partner in the
development and supply
of medium- and heavy-
duty diesel engines
below 500kW.
MTU markets the off-
highway versions of
these engines in the
construction equipment
sector, among other
industries.
ce
