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PRESS: Canadian Firm Brookfield Terminates Carillion Contracts Deal

9th Mar 2018 06:59

LONDON (Alliance News) - Canadian real estate and facilities company Brookfield Global Integrated Solutions has pulled out of a deal to take over a portfolio of Carillion PLC's UK contracts, the Financial Times reported on Thursday.

In mid-February, Brookfield made an approach to acquire contracts for hospitals, education, transport, emergency services and justice in the UK, representing 2,500 Carillion employees. However the company has terminated the deal, citing a lack of support from customers.

Chief Executive Officer Gord Hicks said Brookfield was disappointed by the results but would continue to "pursue opportunities to grow our global business in the UK".

Carillion entered compulsory liquidation in mid-January, and since the start of February several firms have acquired parts of its business, starting with Fairfax Financial Holdings Ltd, which acquired the majority of the construction firm's subsidiary Carillion Canada.

Infrastructure firm J Murphy & Sons Ltd bought Carillion's UK power business, taking up its electricity overheads lines work with FTSE 100-listed utility infrastructure giant National Grid PLC.

Serco Group PLC, which operates prisons and transport services for governments, signed a business purchase agreement for 15 UK health facility contracts from Carillion, for a reduced consideration of GBP29.7 million, from the GBP47.7 million agreed to in December.

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