Construction giant Balfour Beatty, the company leading the extension of the Midland Metro in Birmingham city centre, has sold its consultancy arm Parsons Brinckerhoff for £820 million.
After several weeks of meetings and public statements, it became clear Carillion was keen to retain Parsons Brinckerhoff in a newly merged group whereas Balfour was determined to proceed with the disposal as planned.
As a consequence, merger talks broke down last month meaning the deal, which would have created a £3 billion giant, never went ahead.
Balfour Beatty, which also buit the Queen Elizabeth Hospital in Selly Oak, announced the sale of Parsons to WSP Global today.
As a result of the deal, it said it planned to return up to £200 million to shareholders and use approximately £85 million to reduce the group's pension fund deficit.
It added that the company would be repositioned as an Anglo-American infrastructure group focused on construction, services and investments.
Balfour acquired Parsons Brinckerhoff in September 2009 for £382 million.