Costain has thrown in the towel in the battle for control of May Gurney.
The construction’s firm move clears the way for May Gurney to be taken over by Kier, in a deal agreed earlier.
Costain bid £178m for May Gurney in March but this was trumped by a £221m bid from Kier.
MRW’s sister title Construction News reports that Costain chairman David Allvey has insisted his firm’s bid “fully reflected” the value of May Gurney, and that it would not increase its offer to try to outbid Kier.
He said: “We made a recommended offer for May Gurney that we believe fully reflected the value of the business following three months of due diligence. “We had a plan and a price for May Gurney and there was no way we were prepared to compromise on that approach.”