Babcock says merger approach from Serco had no strategic merit


Defence company Babcock confirmed that British outsourcer Serco had made offer to merge with the company in January, but rejected the deal as it had no strategic merit.

The update comes after The Sunday Times reported that Serco had made two attempts to merge with rival Babcock in a deal that would have created a company worth £4bn pounds.

'Given that Babcock is currently undertaking an investor roadshow following its full-year results and capital markets day, the company wishes to confirm that on 23 January 2019 it received an unsolicited and highly preliminary proposal from Serco Group regarding a potential all-share combination between the two companies and confirms that no further proposal has been received,' Babcock said.

But after carefully considering the proposal, Babock rejected it, concluding that a combination of the two companies had no strategic merit and was not in the best interests of Babcock's shareholders, customers or wider stakeholders.

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