Kier confirms it held takeover talks with Mouchel

Infrastructure and construction company Kier Group has confirmed reports that it is in talks to buy sector peer Mouchel.

"In view of recent press speculation, Kier Group confirms that it has held preliminary discussions regarding a potential acquisition of Mouchel," Kier said in a statement on Monday.

Mouchel, which was rumoured to be considering a stock-market flotation or partial sale earlier in the year, works across a range of sectors, including water, property and highways.

The company, based in Woking, Surrey, was listed on the stock exchange until August 2012 when MRBL, a company owned by RBS, Lloyds, Barclays and Mouchel management, took it over.

Mouchel generated an underlying pre-tax profit of £20.8m in 2013, on revenues that totalled £555.3m.

Kier said: "There can be no certainty that an acquisition of Mouchel will be completed. A further announcement will be made if and when appropriate."

Kier's shares dropped 1.1% to 1,396p in early deals.