Following the 15 January announcement that the UK division of Carillion was to enter liquidation, Canada’s Fairfax Financial Holdings announced on 5 February that it will acquire certain elements of the service company’s Canadian business.
As a result of failed talks with shareholders and the government regarding a potential bail out from debts mounting up against the firm, the UK’s Official Receiver was appointed as liquidator and PricewaterhouseCoopers (PwC) as special managers to assist, and Carillion’s UK shares were suspended from the London Stock Exchange.
While the Fairfax announcement made no reference to the liquidation of the UK business, it is timely given the potential impact that the consolidation may have on the Canadian services business.
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