Kier enters the frame for May Gurney

The planned merger of UK companies Costain and May Gurney might find some hurdles in its path as another UK company has said it is considering its options with regard to May Gurney.

The two companies announced this week that both boards would be recommending an all-share merger which they claimed would provide a combined revenue of £1.6 billion (€1.9 billion) for a new company to be called Costain May Gurney.

Now Kier Group has said it holds May Gurney in high regard and views it as a good quality support services business with a range of services which complements Kier’s existing offering.

It said it believed that a combination of Kier and May Gurney would create significant value for shareholders, establishing a market-leading and well-balanced business. It added that the enlarged group would offer an unrivalled range of services to local Authorities as well as providing Kier with greater access to the regulated sector.

Kier said that it was considering its options, and a further announcement would be made “if and when appropriate”.