Construction News

Mon October 26 2020

Related Information

Mears set to confirm deal for eight Connaught contracts

13 Sep 10 Connaught's eight remaining social housing contracts are set to be snapped up by construction and maintenance rival Mears.

Connaught's eight remaining social housing contracts are set to be snapped up by construction and maintenance rival Mears.

Chairman Bob Holt told the Financial Times on Friday that it was in talks with administrators KPMG about taking on the contracts, along with around 1,000 Connaught Partnerships staff.

However, no update had been made by Mears when the stock market reopened this morning. It is thought the firm is still weighing up the value of the contracts.

Any deal would not include Connaught's £125m contract with Norwich City Council, where 600 workers are employed, Holt said.

Morgan Sindall bought the rump of Connaught's housing contracts for £28m, saving 2,500 jobs in the process.

But KPMG said that around 700 of the division's 4,400 workers had been made redundant.

Mears, along with other maintenance firms Mitie and RPS, are believed to be interested in Connaught's compliance division, which is also in administration, along with the group's environmental business.

Together, the two divisions employ 4,600 staff.

Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest construction news, construction tenders, construction data, and construction law.

Got a story? Email news@theconstructionindex.co.uk

MPU

Click here to view more construction news »