June 17, 2019 @ 9:22 by Steven Hugill
An aerospace and defence business with a presence in the North East and North Yorkshire has rejected a takeover approach.
Babcock says it dismissed an offer from Serco Group, describing the move as having “no strategic merit.”
The company, which has an office in Newcastle, added the bid was “an unsolicited and highly preliminary proposal.”
The approach was made in January, with Babcock only revealing its rebuttal today (Monday, June 17) in a response to media speculation and an investor roadshow following its full-year results and capital markets day.
Serco already has a presence in the North East, operating the International Fire Training Centre, based at Durham Tees Valley Airport, near Darlington, which has tutored firefighters from countries including France, Germany and Poland.
A Babcock statement read: “The company received an unsolicited and highly preliminary proposal from Serco regarding a potential all-share combination between the two companies and confirms that no further proposal has been received.
“The board of Babcock, together with its advisers, carefully considered the proposal and unanimously rejected it, having concluded 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.”
Babcock also has a base in Catterick Garrison, North Yorkshire, which it took on after being named preferred bidder for Defence Support Group, known for maintaining military Land Rovers and heavy-duty trucks.